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newbeginingshey t1_iy6mplx wrote

Most judgments are resolved with voluntary payment plans. I’d expect the law firm to contact you to see if you’re amenable to that first. It’s common, not an entitlement.

I wouldn’t do anything drastic to hide your bank balances. Plenty of other assets can be garnished or have a lien put on them. If you have the balance to pay, that will be less problematic than a lien on your home. A voluntary payment plan will be the least painful path forward as you can negotiate the monthly amount - anything they have to garnish will be taken all at once without warning.

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dudeindebt1990 OP t1_iy86hpo wrote

Yeah I have a lawyer who is representing me so I haven't been in contact with the plaintiff/creditor.
So they could take everything? There's no limit/percentage to how much they could tank from bank? This is in TX as well

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newbeginingshey t1_iy8f1ip wrote

I don’t know the TX specifics. Your lawyer could give you those, but having worked in this space myself, there is a % cap on wage garnishments, but not a cap on bank balances. Obviously a lien on any tangible property won’t be capped - it will just be the full remaining balance.

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dudeindebt1990 OP t1_iy8saxj wrote

That's awful. So they could literally make me get evicted by taking all my funds so I couldn't pay rent?

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newbeginingshey t1_iy8wx0k wrote

The situation you describe is why there’s a cap on wage garnishments (I don’t recall the exact amount but I think it’s close to 20%). They can’t take 100% of your paycheck. That could make you homeless, or inadvertently punish any kids you might have etc.

Bank balances though don’t have a cap. Nor does a lien and once there’s a lien on the home, a sale can be forced to collect, so yes you needing to move can be a downstream outcome.

Not to sound like a broken record but all of this is why a voluntary payment is better. Name the amount you can pay each month without becoming homeless.

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dudeindebt1990 OP t1_iy99w6l wrote

Yeah that's crazy. I guess it doesn't make sense to have a cap on wage garnishment if there's no cap on how much they can take from bank. Wages go into a bank as soon as their paid lol. It's silly that a state would not allow wage garnishment but would allow bank garnishment. I'd prefer to have a wage garnishment since there's a cap there, rather than all of my money be depleted.

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