I signed up with Colonial Debt Relief for $1200 to reduce my Capital One credit card bill from $8000 to $3200. They sat on m...
Full Question:
I signed up with Colonial Debt Relief for $1200 to reduce my Capital One credit card bill from $8000 to $3200. They sat on my case for months, so my account went to Capital One attorney, which they said they were going to garnish my pay to get the money. Col. Debt Relief gave Capital One attorney my checking account number, and they withdrew $1005 from my account without my permission to start getting some of their money back. What are my rights at this point?
05/29/2007 |
Category: Debts and Credit |
State: Georgia |
#6023
Answer:
You might:
1. Repay the debt (make a deal directly with the creditor);
2. File a proposal to creditors; or
3. File for bankruptcy.
Unfortunately, once a creditor has instituted garnishment proceedings, the garnishment is difficult to stop without filing for bankruptcy. Many jurisidictions offer certain property exemptions to a debtor which will protect the property from the collection efforts of the creditor. In order to claim the exemption, the debtor must file certain paperwork with the court and creditor notifying both of the debtor's intent to exercise the exemption.