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I Was Paying a Debt Collector for a Garnishment and They Went Out of Business. Now What?

Written by Consumer

Back in July of 2009 I had a wage garnishment for a credit card with a collector who went out of business, they garnished my wages for about 4 months before they went out of business. I was issued a final garnishment payment from the court. In July of 2011 I receive a letter from another collector stating they are now handling it, so I sent a proof of debt letter. Today I received a stipulation of substitute attorney for it. My question is now what happens? Thanks

Tony in Michigan

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1 Comment

  • Hi Tony,

    Did you pay off the full judgement amount? It is not clear from what you wrote.

    The proof of debt letter you refer to – did you send proof you paid off the judgement or did you request they send you proof they are collecting a legitimate debt?

    You should consult with an attorney experienced in representing consumers with debt collection issues before determining your next step.

    If the judgement debt still has a balance owing and all is legitimate – making arrangements for payment that will meet your budget would be your next step. Checking with an attorney first would be wise.

    How much money are we talking about here? What is the amount they are trying to collect (if a balance remains)?

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