Can debt collection agencies collect a debt by garnishing my wages or my bank account?
Yes. If the debt collector receives a court judgment after filing a lawsuit against the debtor, the collector can collect the debt by: • Garnishing up to 25 percent of a debtor’s net wages • Taking the funds from the debtor’s bank account • Recording a lien against the debtor’s real property In many states, even if the debtor has no assets at the time of the judgment, the collector can continue to try to collect the debt for up to 20 years.
Related Questions
- A debt collection agency may sue you and if a judgement is granted against you, a collection agency may go into your bank account to collect the amount owed. Question: Can I go to jail for not paying the purported debt?
- Does the law allow the Tax Office to use external collection agencies to collect outstanding debt?
- Why is the Tax Office using external collection agencies to collect outstanding debt?
