Can a credit card company garnish my paycheck if I am starting a debt settlement?

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Can a credit card company garnish my paycheck if I am starting a debt settlement?

I am current on all my accounts, but the payments have gotten too high, and I am borrowing from Pete to pay Paul. So I was advised to do a Debt Settlement. I understand Citibank will fight it hard, and I do not want them to garnish my paycheck. Is this the right path? I so don’t want to ruin my credit.

Asked on August 23, 2010 under Bankruptcy Law, Georgia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Garnishment is a method of attempting to collect a debt AFTER a judgement has been rendered against you by a Judge in a Court of law.   If you are current on your payments then no one is going to sue you and no one is going to get a judgment against you.  If you are attempting to settle the debt for less than the amount owed then that amount is negotiated with the credit card company to an amount that they will consider taking in a lump sum right now rather than is payments over time. Can they refuse? Sure they can.  No one can force them to settle the debt except a judge, and maybe not even then.  I am assuming that you are getting help with all of this so ask.  Good luck.


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