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I am unable to pay on a home equity loan from a foreclosed rental property. This is the third collection agency contacting me stating that I refuse to pay. Currently I am retired due to disabilty receiving Social Security and a disability pension from employer. Can the lender and or collection agency garnish my income?

Submitted: 12 days and 23 hours ago.

Category: Legal

Value: $18

Status: AWAITING CUSTOMER ACTION

State/Country relating to Question: California

Already Tried:
A pro bono attorney sent the previous collection agency a letter stating that I am disabled living on SSA barely making ends meet. The agency that contacted on Friday is giving me until Monday to settled the account for $18,000.00, orginal loan 75,000.00. She recommended that I take a cash advance on a credit card or proceeding with my acccount as a refusal to pay. I have never stated to anyone refusal to pay. I already have approximatley $10,000.00 in credit card debt. In addition due to the foreclosure my interest rates are 18% since I no longer have credit score of 730.

Posted by Dimitry Alexander Kaplun 12 days and 23 hours ago.

Answer

If the collection agency and lender retain a judgment against you, then yes, they will be able to garnish your paycheck and freeze your bank account until they are fully compensated (which at that point will also include court, filing, and attorney fees, as well as interest on the original debt).

Sincerely,

XXXXXXX XXXXXXXXX XXXXXX, Esq.

12 days and 23 hours ago.

Reply

I thought Social Security Disability and Disability pension were exempt from garnishement. What should I do if my option to pay this $18,000 settlement offer is to charge it on a credit card at 20% or more on a credit card that i will not be able to afford monthly payments on. I probably could only afford another $5,000.00 additional credit card debt. Should I offer the lender $5,000? I still dont know what to at this point by Monday. I dont even have paper work on this new collection agency that is now in my current state of GA.

10 days and 12 hours ago.

Reply

Thanks for your assitance. However, I am still waiting for an answer from the expert panel.

Posted by NYLAWLADY 10 days and 4 hours ago.

Answer

This expert is correct, however if your only income is SS and disability then yes, they are expert from garnishment but if the money is placed in any checking or savings account, it is subject to a lien if your creditors get a judgment. Your best bet at a negotiation is before they obtain a judgment.
Is there anything else I can help you with? Thank you for allowing me to help you with your question. Please press the "accept" button so I may be credited and paid for my time. Positive feedback is always appreciated .This answer is for informational purposes only and does not constitute legal advice. Nor is an attorney-client relationship established. Thank you very much.

8 days and 5 hours ago.

Reply

Can the lender place a lein on my two other properties although there is currently no equity?

Accepted Answer

Yes, they can.
Thank you for allowing me to help you with this question. If I have been helpful, please click Accept for my time , this is the only way I get paid. If you need more help or clarification, please click reply. Positive Feedback is greatly appreciated and reciprocated. These responses are for informational purposes only, not legal advice and as such do not create an attorney client relationship.

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Expert:	NYLAWLADY
Pos. Feedback:	97.5 %
Answered:	11/13/2009

Attorney

12 YEARS PRIVATE GENERAL PRACTICE , CIVIL APPEALS AND LITIGATION

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Thanks for your assitance. However, I am still waiting for an answer from the expert panel.

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Can the lender place a lein on my two other properties although there is currently no equity?

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