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I Had a Judgment Against Me From American Express and Platinum Services. – Mary

By on October 22, 2010
I Had a Judgment Against Me From American Express and Platinum Services. – Mary

“Dear Steve,

After being unemployed for a year, I was hired as a CNA at a Long Term Care Facility. In 2003, I received a judgement against me from Platinum Services, ie, American Express. Due to an agressive illness,I had been paying an agreement through the company, but it was less than the minimun payment. I did not have the agreement in writing, but I was paying every month. Out of the blue, I received notification that I had a judgement against me. My lawyer made arrangements with American Express for monthly payments, and (for five years) I never missed a payment. Two years ago, I heard no more from the company’s lawyers. Last year, I was contacted to resume payments. I told the lawyer about my illness, and my IRS debt. They were to contact me with their decision. Now, I have this garnishment—

I live in Missouri. How much of my monthly wages can Platinum Services take from my check? If I requested a reduced amount, so that I could afford gasoline to drive the sixty miles round trip per day, would the company resend the garnishment. I have honorably paid this debt in the past—-this step was unnecessary.

can anything be done….?

Mary”

Dear Mary,

Creditors don’t treat people individually. It’s a process. People get sued, they lose, get judgments and garnished. It’s all just moves from one bucket to the next.

If there is no expectation you can afford the garnishment and they are not willing to mutually agree to a reduction, then the logical solution is bankruptcy. Bankruptcy would kill the garnishment and debt. If you still wanted to repay your debt for personal reasons after the bankruptcy, you could.

But if you have other debts as well, bankruptcy might be the best tool to allow you to focus on your health and IRS debt.

You can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact Damon Day.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  1. Doyle Brueckner

    October 24, 2010 at 2:28 pm

    One other note Mary. Typically, you can expect a garnishment of about 25% of your take home paycheck. However, if the garnishment puts you into a hardship where you cannot afford to pay your bills, buy food, or other nessesities like gasoline to get you to work, than you can petition the court to either order that the garnishment percentage be lowered or even that the garnishment be stayed (stopped) altogether. This would require you to show exactly what your income/expenses are, but can be a way for you to avaoid bankruptcy if you qualify.

    The rules on exactly what the court will or won’t allow for expenses varies from state to state, and I would recommend discussing this with a local attorney. But the bottom line is that you have the right to keep the portion of your take home pay that you need for nessesities. And this right trumps the right of the credit card company to garnish your wages.

    I hope this helps!

    Doyle Brueckner

  2. Doyle Brueckner

    October 24, 2010 at 6:28 pm

    One other note Mary. Typically, you can expect a garnishment of about 25% of your take home paycheck. However, if the garnishment puts you into a hardship where you cannot afford to pay your bills, buy food, or other nessesities like gasoline to get you to work, than you can petition the court to either order that the garnishment percentage be lowered or even that the garnishment be stayed (stopped) altogether. This would require you to show exactly what your income/expenses are, but can be a way for you to avaoid bankruptcy if you qualify.

    The rules on exactly what the court will or won’t allow for expenses varies from state to state, and I would recommend discussing this with a local attorney. But the bottom line is that you have the right to keep the portion of your take home pay that you need for nessesities. And this right trumps the right of the credit card company to garnish your wages.

    I hope this helps!

    Doyle Brueckner

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