CanI get a garnshment for removed/reduced due to financial hardship?

UPDATED: Aug 23, 2011

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CanI get a garnshment for removed/reduced due to financial hardship?

I have $30,000 in debt. A collection agency wants $335 a month. Is that legal or should it be 25%. I cannot do a Chapter 7. Sole provider of 3. Laid off for 2 years just got a part-time job at 7.85 and hours, 16 a week. No other member of family works. This is for only 1 creditor and I am getting other calls. I may not have the money but if I do, that leaves about $200 a month on food and medicine for 3 people. Threatened by company of suit. I may get more suits. What can I do to keep any income for providing for my family?

Asked on August 23, 2011 Arizona


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you owed $30,000 for a debt that has not been reduced to a judgment where you have a collection agency pestering you about a monthly payment of $335.00 to start reducing what is owed, but that amount you cannot afford, counter the $335.00 monthly amount with one that you can realistically afford in writing.

It is important in negotiating any settlement of this debt is to keep in contact with the collection agency via written correspondence (keeping copies of such for future records) to show that you are making a good faith effort to try and pay down this obligation.

Unfortunately, one cannot have an obligation for money owed reduced or removed due to financial hardship unless one files for bankruptcy protection.

If you are not a bankruptcy candidate, your other choices to obtain a greater net monetary disposable income for you and your family is to somehow increase the amount of hours you work per month, reduce your monthly expenses and work out a signed and written payment plan for your debt reduction with your creditors.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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