Wage garnishment question..

[nirvana555]

I'll Try to get right to the point. I had to consolidate my credit cards into a debt consolidation program because I'm working at a job that's 20,000 less a year than I was making before I was laid off in 8/11. I Was on unemployment for about 1 1/2 years and then got job where I am now in 1/13. Had my taxes done last week and because I really needed the money during the year of 2013, had them take out less for taxes through the year. Between what I'm going to need to pay for the monthly tax plan (because I owe state and federal), car insurance increasing a lot, and now needing to pay for health insurance, I don't know how I'll be able to continue the credit card consolidation pmt. it's basically 2 c-cards that I owe around 7-10k on. I live in CA. Who out there in DU Land
knows anything about this or could recommend someone or a site to me regarding whether or not the c-card co. would try to garnish my wages? Thanks to any and all for your input....

[haele]

1. If it's a reputable consolidation company, it would be best to talk to them up front.

They can be talked into lowering payments until you pay off your tax plan, especially if they're making money off the interest, or if they also handle tax debt as part of their consolidation package, they might be able to incorporate that into your payments, which basically is the same thing.

But yes, in CA, they can take you to court and garnish your wages if you just stop paying - and they will if the money they can get through garnishment via court will make more profit even after paying the court fees and their lawyers.
Happened to a co-worker who bailed on the final $2K of his consolidation payments "after moving and forgetting to give them the address change" and ended up owing about $25K more in late fees and penalties once they caught up with him 8 years later - after he applied for a store credit card. Since the company was a legal firm, the debt was not subject the same statute of limitations and write-off rules that Home Depot, Visa, or American Express is.

Really messed up his security clearance.

Haele

[nirvana555]

2. That sucks! I guess I'll need to talk to an attorney. I'm open for more input....N/t