They Are Coming After You

Courtney is being pursued over credit card debt and could have her wages garnished. Dave wants her to be cautious, but sees a way out.

QUESTION: Courtney is having her wages garnished from $3,700 in unpaid credit card debt. She’s self-employed and a single mom of two kids and does not pay herself a salary. She wonders how the garnishment process works.

ANSWER: A wage garnishment is useless because you don’t have any wages. They sued you, won and gotten a judgment, and now they are executing on it. They will try to take things from you including your wages if you have a traditional job. The employer has to take a piece of your paycheck and send it to them each month. But since you are your own employer and don’t have a paycheck, they are trying to take a lien on your bank account, which is coming next.

Your business is not making it right now and with all the pressures you have, you’ll have to decide if it becomes a part-time thing while you search for a full-time job. As soon as you get some money, you’ll be able to clean this up. You could offer them $2,000 today as settlement in full and they’d go away. But you need to watch your bank account like a hawk because they are being aggressive with you.