Consumer Protection Law
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My main income is Military retired pay and VA disability pay.
My understanding is that this income can not be garnished for non payment of consumer debts? My rental income should be the only income they can garnish up to 25%. Is this true? Plus I think they could try to place a lein on my property but I doubt they could force a sale.
Also, since this is an attorney collection agency would I be corrrect to assume they already plan to file suit against me and are not looking to make a settlement?
I have been researching your answer and would like to ask a follow up question.
1. Is it a fradulent transfer of my rental property to an LLC or such even though I have not been served and have no legal action pending at this time and do have other income (Military retirement & VA disability) that I can use to pay this debt.
If offered a reasonable settlement offer I plan to settle with the collection agency as I have with all my other creditors. But I am currently paying two other settlements and can't really afford to pay another at this time.
A. A transfer made or obligation incurred by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:
1. With actual intent to hinder, delay, or defraud any creditor of the debtor; or
2. Without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor:
a. was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction, or
b. intended to incur, or believed or reasonably should have believed that he would incur, debts beyond his ability to pay as they became due.
B. In determining actual intent pursuant to the provisions of paragraph 1 of subsection A of this section, consideration may be given, among other factors, to whether:
1. The transfer or obligation was to an insider;
2. The debtor retained possession or control of the property transferred after the transfer;
3. The transfer or obligation was disclosed or concealed;
4. Before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;
5. The transfer was of substantially all the debtor's assets;
6. The debtor absconded;
7. The debtor removed or concealed assets;
8. The value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;
9. The debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;
10. The transfer occurred shortly before or shortly after a substantial debt was incurred; and
11. The debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor.
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