Garnishing My Checking Accounts For A Debt No Longer On My Credit

by Samantha
(Detroit Mi)

In 2001 I had a car that was stolen I had lost my job in between the time the car was stolen and found. And I owed the loan company over $16000.

The debt is no longer on my credit report and the debt collector in march 2011 garnished my checking and savings acct. I did contact and stated I would try to pay something, I said it out of fear, really couldn't afford the payment and not knowing what to do.

After I got off the phone with them I realized this was no longer on my credit report and in Michigan as long as I don't make a payment the statue of limitations can not be reset

In April they called and asked about the payment and I just told them I couldn't afford it at all. They wanted $300 a month and I'm working part time.

The other day they garnished my checking and savings again and I wanted to know do the debt company have the right to keep garnishing my checking and savings if the debt is not on my credit report.

Reply from DebtCollectionAnswers.com:

Samantha,

We are not attorneys and can't provide legal advice. What we can tell you, however, is that there is a federal law that governs how long information can appear on your credit reports. That law is called the Fair Credit Reporting Act.

It sounds like the creditor has a judgment against you since it is garnishing your wages. State law governs how long creditors can collect judgments, but in many states, judgments last for many years and can be renewed.

Since this is a large amount of money and you can't afford it, please at least talk with a bankruptcy attorney who can help you understand your rights here. The bankruptcy attorney can explain to you what the creditor can and cannot do to collect, how long the judgment will last against you, and explore your options for dealing with this debt.

We hope things turn around for you.

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