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Question: “Do I have any recourse to have them accept my terms . The 250.00 is burdensome, and I would prefer something more comfortable. Can I stop any further levy action at this point? Sadly I have ingnored this which I am sure is not unique.”
Answer: Unfortunately, the answer is no. The creditor doesn’t have to accept anything less than full payment if it doesn’t want to, so the $400 monthly payment plan is already a concession. If you can’t agree on a payment plan, then the creditor is within its rights to go after you using all available methods – levying bank accounts, garnishing your wages, placing liens on your property, etc.
Having said all that, you can’t squeeze water from a rock. If you don’t have the money or assets, then levying bank accounts and placing liens may not be possible. In addition, although your wages can be garnished, the law will not allow more than 25% post-tax to be garnished. So, if your monthly income after taxes is $1000 or less, then the creditor should be happy with $250 a month (which is 25% of $1000). On the other hand, if you make more than $1600 a month after taxes, then a $400 monthly payment is a good deal since the creditor would likely be entitled to more … i.e. 25% of $1600 is $400. For example, if you make $4000 a month after taxes, then the creditor would be entitled to $1000 a month.
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