Question:
Due to some health problems preventing me from gainful employment, I have
about $8000 debt in medical bills and credit cards that I have not paid any
money towards for about 16 months. Obviously, I have been receiving
numerous threatening letters from various collection agencies on a weekly
basis. Normally I would file personal bankruptcy to discharge this debt but
I already filed Chapter 7 in 2000 and I cant think about filing again until
2007.
I have been offered an employment position recently only for a 6-month
period, but possibly longer.
My question is this......will these collection agencies immediately detect
that I will be employed once I submit my social security number to my
employer and start receiving paychecks? I dont care about judgment liens
against my personal property since I dont own anything of real value, but I
do not want my wages garnished at all since I will need every cent for rent
and living expenses. Unfortunately, I will employed in a state where wages
can be garnished up to 25% of net pay and this will be too much of a penalty
for me.
Does the speed of detection depend on the particular collection agency, or
do they all have access to a master database that will instantly inform them
that I have employment?
Answer:
Wages cannot be attached (garnishment) until after judgment. They sue you,
win, get a judgment, then attach wages.
I don't know of any master data base. Normally judgment creditors find out
your employment by asking you, under oath, in a debtors examination. There
are other ways of finding out, of course. But submittal of your social
security number to the employer won't cause notification to anyone other
than IRS, Social Security administration, various benefit and workers comp
insurance carriers, and whoever else the employer decides to reveal your
employment to.
If the creditor knows about your bank account, including the number, where
you will be depositing paychecks, the funds in that account can be atached,
after judgment.
