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Ask Barrister Your Own Question
Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 37373
Experience:  Attorney,16 years experience in consumer protection areas
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I need legal advice regarding a debtor who is threatening garnishment

Customer Question

I need legal advice regarding a debtor who is threatening garnishment of wages for a debt settled prior to my move to MI.
Submitted: 2 years ago.
Category: Consumer Protection Law
Expert:  Barrister replied 2 years ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can..What is your legal question that I can help with this afternoon?.Did you have any type of written agreement with the creditor where they agreed to settle the debt for a certain amount?.If so, did you pay the agreed on amount?.Has the creditor filed suit against you and gotten a judgment?..thanksBarrister
Customer: replied 2 years ago.
I received nothing but an acceptance of my check marked "paid in full". For a period, my credit report showed it was settled, but then once I moved to MI, the issue came about again. Now I m being sued.
Expert:  Barrister replied 2 years ago.
Ok, then you can defend against the suit if you can prove that an "accord and satisfaction" occurred when they cashed the check with the "paid in full" memo. This basically means that there was a settlement..Generally, to establish accord and satisfaction there are three requirements under VA Code § 8.3A-311. It states:.§ 8.3A-311Accord and satisfaction by use of instrument.(a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amount of the claim was unliquidated or subject to a bona fide dispute, and (iii) the claimant obtained payment of the instrument, the following subsections apply. For purposes of this subsection, a person does not act in good faith when tendering a check in full satisfaction of an obligation under a loan if (i) such check is for less than the amount due under the terms of the loan agreement and (ii) such check is tendered to a person without knowledge of a dispute concerning the loan...So if there was an actual debt in dispute as to the amount owed, you acted in good faith in sending the check, and they then accepted it, then you can argue that they settled the debt. But if you just sent in a check stating "paid in full" without any active dispute going with the creditor, then this isn't an accord and satisfaction..But they can't garnish your wages unless they win in court and get a judgment against you. .So at this point, it would be up to you as to whether it was worth fighting them in court over the claim if they have actually filed suit...thanksBarrister