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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I just received notice from my employer that my wages will

Customer Question

I just received notice from my employer that my wages will be garnished from a debt due to a credit card company. However, this debt is almost 11 years old, it's no longer on my credit report and I didn't find out about the garnishment until my employer told me about it I haven't received anything from the collection agency in almost 8-9 years. What options do I have?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome!

I am an attorney with 25+ years of legal experience and am working diligently on your answer while I await your response.

Please tell me:
Was a judgment entered by the court?
was it a default judgment?
Do you have other debt problems?

Thanks!
Customer: replied 5 years ago.

yes, yes and yes old problems but problems nonetheless

 

Expert:  Ellen replied 5 years ago.
Hello,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.

Since the judgment was entered by the court, 25% of your wages may be garnished in Minnesota

You may want to consider a chapter 7 bankruptcy. I will explain.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.


A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Minnesota:
http://www.bankruptcyinformation.com/mn_exemp.htm


Please let me know if you have any questions concerning my answer.
Customer: replied 5 years ago.
don't they have to notify me first? isn't the statute of limitations 6 years? how can they collect on something that is no longer on my credit report?
Expert:  Ellen replied 5 years ago.

You are being notified with the writ of garnishment

The statute of limitations is 6 years to file suit. However you have told me that a default judgment was entered by the court and therefore the six-year statute does not apply. A judgment may be collected at any time within 10 years and the judgment may be renewed for an additional 10 years

A reflection on a credit report is not required to collect the judgment