Garnishment rules (by Ally [IA]) Apr 28, 2014 7:38 AM
Garnishment rules (by tryan [MA]) Apr 28, 2014 7:47 AM
Garnishment rules (by S i d [MO]) Apr 28, 2014 7:54 AM
Garnishment rules (by Nicole [PA]) Apr 28, 2014 8:14 AM
Garnishment rules (by Kyle [IN]) Apr 28, 2014 8:22 AM
Garnishment rules (by V [OH]) Apr 28, 2014 8:32 AM
Garnishment rules (by Lee [IN]) Apr 28, 2014 8:56 AM
Garnishment rules (by Ally [IA]) Apr 28, 2014 9:03 AM
Garnishment rules (by V [OH]) Apr 28, 2014 9:17 AM
Garnishment rules (by phil [NY]) Apr 28, 2014 9:47 AM
Garnishment rules (by Ally [IA]) Apr 28, 2014 10:00 AM
Garnishment rules (by Ken [NY]) Apr 28, 2014 1:17 PM
Garnishment rules (by Ally [IA]) Apr 28, 2014 6:14 PM
Garnishment rules (by Ally [IA]) May 2, 2014 11:36 AM
Garnishment rules (by Laura [MD]) May 2, 2014 5:57 PM
Garnishment rules (by Ally [IA]) Posted on: Apr 28, 2014 7:38 AM Message:
State Specific Question About: IOWA (IA)
We've got a rental SFH in Iowa. Past tenant was chronically late on rent, we finally kicked them out and they signed a promissory note for the balance due between rent & security deposit. They only made 2 of the agreed-upon payments, so we sued them in small claims court and won a judgement of $757. They only made 1 of the required $50/month payments, so we filed a garnishment on her work (he's an electrician that bounces around employers, so didn't know where to serve). Turns out she was no longer employed there.
So we dug up an old check from our bank records, and served a garnishment on her bank account. She has protested based on hardship because she's not employed, and apparently doing some sort of side business and "need my business account in order to do business with any vendors in order to make money."
We have a hearing on the motion to quash garnishment this Friday. I've never been through one, so want to be prepared. What types of hardship reasons are allowed by the courts to quash garnishment? What types of arguments by landlords are accepted to counter hardship arguments?
Some additional background, that may help you advise me: She's likely lying about the whole "business" thing, as they were both chronic liars. This account pre-dated her leaving her previous employment. He is reportedly now working in Arizona, and she is reportedly moving soon (May 1st?) with the kids to join him. Current amount due is around $1000.
I'm also wondering, if they move to AZ, do we have any hopes of ever collecting on the judgement? How do you do these things across state lines, especially when you don't know how to find them or their place of employment? I know, there are limits to how much effort it's worth to collect $1000, and we'll decide that when the time comes. But I'm trying to educate myself as much as possible.
--66.232.xxx.xx |
Garnishment rules (by tryan [MA]) Posted on: Apr 28, 2014 7:47 AM Message:
Looks like you're fast approaching the point where you have more time/money into this than it's worth. Blood from a stone comes to mind.
I would have let this one go after the second missed payment. Better places to spend time/money. --50.176.xxx.xxx |
Garnishment rules (by S i d [MO]) Posted on: Apr 28, 2014 7:54 AM Message:
Hi Ally. Sounds like these deadbeats have quite a bit of experience giving creditors the run-around. You are wise to consider how much time and effort it is worth to peruse them. I may have misread, but it sounds like you are actually going further into the hole attempting to collect. I base this off the $757 judgment you won originally and now stating they owe is around $1000. Or perhaps that is just interest accruing on the debt.
Either way, the amount of time spent going to hearings is certainly costing you: figure out what your time is worth and see if it would be better to turn this over to a professional debt collection agency. I used Shaeffer and Associates in Columbia, MO and I believe they handle work outside of MO. They charge 40% of money collected but no out of pocket fees if you already have a judgment, which is pretty average for the industry. Ph#: 573-875-7966 if you want to see what they may be able to do for you.
Regarding the hardship issue: last I checked the limit was 25% of wages can be garnished. Some kinds of income are exempt from garnishment: SSI, SS, some pensions.
One private method of locating garnisheable income (i.e. W2 job): Facebook. I've located several deadbeats this way. They are not wise enough to make their employment information private, so I use a throw-away FB account to hop onto their pages and learn more about how to get paid. --108.250.xxx.xxx |
Garnishment rules (by Nicole [PA]) Posted on: Apr 28, 2014 8:14 AM Message:
if there is enough money in their bank account to make you whole, I'd hire an attorney to represent me. My lease also says they must pay for my attorney fees for collection efforts so they'd owe me that too. If they don't have enough in the bank to get you your $1000 plus the attorney fees, I'd probably just let the judgment ride
someone above said use a collection agency ... not sure if they have any real "bite" other than being a pain in the tush with phone calls & letters. You already have your judgment so any threat of "collections" or "bad credit" are moot at this point. --174.55.xxx.xxx |
Garnishment rules (by Kyle [IN]) Posted on: Apr 28, 2014 8:22 AM Message:
Bank garnishments and exemptions vary greatly between states. From some quick research it looks like IA exempts the first $1k in the account from garnishment and any funds from exempt sources are also exempt. I do not see anything for a hardship or business exemption. Do you know the balance in their account?
If they ask to exempt the money in the account from garnishment, I would request copies of their bank statements to verify what funds are from exempt sources.
Once they cross state lines, collecting becomes more difficult. Banks will still usually respond to out of state garnishments, but employers are more likely to ignore them. To truly pursue them, you would have to domesticate the judgment in the courts of their new state. Before you take that project on, you should definitely consider a contingency based collection agency. --68.46.xxx.xxx |
Garnishment rules (by V [OH]) Posted on: Apr 28, 2014 8:32 AM Message:
Get an atty to sweep the account, payments are overdue, if this was a rental car it would be towed to the storage lot while this collection went along - these are -professional- renters. --75.94.xxx.xxx |
Garnishment rules (by Lee [IN]) Posted on: Apr 28, 2014 8:56 AM Message:
Sid- have you had some luck with the firm you have mentioned? I am looking for a collections outfit to do my chancing after I get judgments. I am thinking this will save some time. Thanks. --216.69.xx.xx |
Garnishment rules (by Ally [IA]) Posted on: Apr 28, 2014 9:03 AM Message:
The promissory note does require them to pay attorney fees & collection costs. That's why the balance is now $1000: a couple garnishment attempts and some accrued interest.
I am hesitant to hire an attorney due to the "blood from a stone" potential. It's one thing to spend $65 serving a garnishment, it's quite another to spend a few hundred trying to collect a $700 judgement.
I don't know the balance in the account. Am I entitled to find out before the hearing?
The form she filed was a "Motion to Quash Garnishment & Request for Hearing" that provides for 2 reasons: hardship and exempt funds. She filled out hardship, claiming not currently working and needing money to pay vendors. She's not claiming the funds are exempt.
iowalegalaid.org (directed towards the garnishees, of course) says:
Even if you have income or assets that are not under the protected limits you may apply for a hearing with the court to reduce the amount of allowed garnishment. You would need to claim that the garnishment makes a hardship for you and your family. You must show the judge evidence about your household dependents, necessary expenses, and other possible reasons that make it difficult for you to maintain your household unless the garnishment is stopped or reduced.
So it looks like the hardship thing has to do with income & expenses, not the fact that she might be running a business out of the account.
So will the judge ask her to produce a budget? Proof of her husband's current income? Can we challenge any claims she makes not backed up by proof (like if she denies her husband is working)? What sort of evidence/hearsay will we be allowed or asked to produce?
--66.232.xxx.xx |
Garnishment rules (by V [OH]) Posted on: Apr 28, 2014 9:17 AM Message:
Bank statements showing input - output, your honor the defendant is dodging the debt owed - we did try -working- with them and that is why we are here now. --75.94.xxx.xxx |
Garnishment rules (by phil [NY]) Posted on: Apr 28, 2014 9:47 AM Message:
Depending on the amount in the checking account, she may not even appear, but has already moved to Arizona by Friday
If that happens, you will have to take your judgment, record and pay a fee to register the foreign judgment in AZ, then you are bound by AZ collection laws, assuming you can locate them in AZ
On collection agencies, despite claims of agencies only charging 40 cents on the dollar, you will find the majority of firms, will not touch a onetime residential landlord tenant debt with a ten foot pole, since that debt is considered the lowest rated debt in the industry
--68.39.xx.xx |
Garnishment rules (by Ally [IA]) Posted on: Apr 28, 2014 10:00 AM Message:
If she doesn't show up at the hearing she requested, don't we win the release of the funds by default?
BTW, these deadbeats aren't new to the idea of owing money and being sued, but I wouldn't put them in the camp of really being smart about how to work the system. They're just really stupid about managing their money and have no qualms about walking away from debts.
I wish we could be like a government entity and garnish their EITC-rich tax refund. We filed the bank account garnishment in early Feb, hoping it would coincide with a big fat tax return's arrival there. Perhaps it did.
It's not sounding like chasing them to Arizona would be worth it. --66.232.xxx.xx |
Garnishment rules (by Ken [NY]) Posted on: Apr 28, 2014 1:17 PM Message:
I would take the position that she is in business therefore she can handle the garnishment taking the money out of the account,no different than having a job.I would also tell the judge if she wants to move she essentially wants that money to move with which is not a hardship,just don't move or wait another month. --24.92.xx.xxx |
Garnishment rules (by Ally [IA]) Posted on: Apr 28, 2014 6:14 PM Message:
I called the Sheriff's office this afternoon to see if they could give me any additional info. They were very helpful. Notice was served on the bank 3/3, and at the time there were "no funds." The order sits on the account, which is frozen until 6/19 or there are sufficient funds, whichever comes first. No additional info comes from the bank until they send a check or the order expires.
The defendant can file a motion to quash anytime before the hold expires. The person I talked to surmised that there was additional money that came into the account, prompting the deadbeat to file the motion to quash.
So apparently there's something less than $2000 in the account, since the first $1000 is exempt and if there was $2000 they'd pay us off.
So at least I've got some leverage: she can't even get her $1000 until she pays me off. We'll see what happens Friday. --75.129.xxx.xx |
Garnishment rules (by Ally [IA]) Posted on: May 2, 2014 11:36 AM Message:
Update: fastest hearing ever. We kept mum, and after the judge reviewed the case history (signed promissory note, default, judgement, default on payment terms), he asked her if she had paid according to the court's decision. She said no, and started talking about how she had found a rent receipt, offered me a settlement, etc. The judge interrupted her and said "motion denied." She said, "seriously?" He said, I don't quash garnishments when the defendants don't abide by the payment plan. End of story. Go judge!
She did sound conciliatory, and told us she wanted to work things out. She said there was no money in the account, but the court took court fees out, putting it into the negative, the account is frozen, she's been flagged so she can't open an account anywhere, and is feeling kind of screwed because "I worked hard to get my credit clean." She's moving to Arizona next week to join her husband.
We told her we'd welcome her payments, swapped addresses and phone numbers, and we'll see. She gave me a copy of the supposed receipt and it's not a receipt, so there's still lots of lying going on. But she's under the impression that all her bank accounts are covered by this garnishment, so she appears to be motivated to clean it up, as she claimed. Again, we'll see. --104.2.xxx.xx |
Garnishment rules (by Laura [MD]) Posted on: May 2, 2014 5:57 PM Message:
Turn it over to a collection agency. Yes they will take X% (large percent), but you get to move on with your life and still get money. --173.66.xx.xxx |
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