If a legal financial judgment has been made against you in a court of law, then a collection agency can legally take your assets as a form of payment. Whether you are declaring bankruptcy under Chapter 7 or Chapter 13 or undergoing legal action for outstanding debts, hiring an attorney is always the best option. A bankruptcy lawyer can help you navigate the difficult legal process and ensure that you keep your assets rather than handing them over to a debt collection agency.
Here are two examples of ways a credit agency can seize your assets:
1. Garnishment- This is the term for a collection agency taking your wages, bank accounts, or even both! If a collection agency wishes to garnish your wages, then it can take 25% of your after-tax pay or 30 times the federal minimum wage, whichever is larger. The creditor can order your bank to transfer funds, and can even take the entire balance in your account!
2. Property Liens – A collection agency can attach a lien to your mortgage or vehicle title, preventing you from refinancing or selling until all debts and fees are paid off.
Although these measures of seizing assets can seem financially crippling, lawsuits are a last resort for creditors to collect debt. Rather than going through the complicated legal process of seizing your assets, collection agencies would prefer to simply receive your payment. By hiring a bankruptcy lawyer, you can negotiate with the agency to create a payment plan for your debt and avoid the prospect of asset seizure.
For professional legal advice on keeping your assets while managing your debt, contact the expert bankruptcy attorneys at Cutler & Associates, Ltd. We offer quality bankruptcy services in Chicago, including Chapter 7 and Chapter 13 bankruptcy.