Question For AZ People With Bad Credit (real estate, mortgages)

[RampageInAZ]

I know credit is a touchy subject, but I have questions and concerns.

I currently live in Austin, TX. Texas is one of the few states where creditors cannot garnish wages, period. (student loans, taxes, child support, can be taken, though)

In the latter half of 2007 I had severe financial difficulties, which essentially resulted in my credit accounts going bad and my score dropping from around 700 to god knows what.(450?)

Things are a tad bit better know. Tried to work with some creditors, to no avail.

Next year, I may move to AZ due to better opportunities with my company.


My concern: I am aware that in AZ, creditors can garnish up to 25% of your after tax income. My question is, how common do creditors actually go this route, and is there any way for the debtor to fight it?

Anyone here brave enough to discuss their bad credit, and let me know if this route is being used fairly often by creditors in AZ?

I know it depends on the actual collector, and the amount, and things like that, but I want to get a general feel on this.

For anyone wanting to lecture, I know I screwed up, and I will be dealing with this for years to come, I already beat myself up enough over it.

Thanks everyone for your help and input.

[Rick Lee]

I've never heard of anyone having the wages garnished for anything other than tax or child support debt. You should be able to work out a deal with each of your creditors or go into credit counseling to get them off your back. Running from creditors is always worse than trying to work out a deal with them.

[sassieb75]

Interesting that I read this, as a friend of mine just had L.A Fitness garnish her husband's wages....yep, 25% for not paying their dues. I believe it has been atleast 3 years since the original agreement. But, yes, it is true that they can garnish here. I really cannot believe it but it seems in this day, they come after you insted of charging off the bad debt. There are going to be alot of people in this predicament due to this economy! YIKES

[RampageInAZ]

Yea, I have really never heard of any creditors actually trying to garnish someones wages for credit card debt.

One of my creditors just charged off one of my accounts.

I hate having my credit jacked up and owing money, but what can you do? And like I said, I tried working with them, but they didn't want to budge.

Anyone else?

[shiphead]

Originally Posted by RampageInAZ

Yea, I have really never heard of any creditors actually trying to garnish someones wages for credit card debt.

One of my creditors just charged off one of my accounts.

I hate having my credit jacked up and owing money, but what can you do? And like I said, I tried working with them, but they didn't want to budge.

Anyone else?

Creditors or the financial institutions will NOT work with you by any means, but they will give you a bad loan anyway. We live in millionaire land and loosing a job never happens btw, i would keep all communication between you and any credit institution in writing or recorded for 7 years.

I only say these things because i've had to deal with the financial system bs.

As far as credit, i told my fiance that i wanted to hold off on marriage because i would drill her credit to the ground.

[Rick Lee]

Originally Posted by w1ngzer0

Creditors or the financial institutions will NOT work with you by any means, but they will give you a bad loan anyway.

What do you mean by a bad loan? I've gotten lots of mortgages, car loans and credit cards and don't recall one of them ever being "bad". If you pay as agreed, it works out just fine. I did once get into credit card trouble after college. All of them cut me a great deal, once I contacted the appropriate departments.

[shiphead]

damn my fiancee's computer. I had this large paragraph typed and poof, it went away. Let's just say Chase and Subuaru wouldn't bother giving me a chance to catch up. Talking to their financial people isn't any better.

I could not afford a big car loan. I could afford a $5000 car loan and handle the payments because they would end soon. Instead, the state requires you to buy a car worth $10,000 to qualify for a loan. I couldn't afford $10,000 or more, as a car loan. I needed a car, so i got the higher loan.I got stuck. I was living paycheck to paycheck, making payments on time. I was 3 years into it with no problems, when i was laid off. Couldn't find work for a couple months and was screwed.

Talked to them multiple times over the phone about the situation and refused to work anything out. I could have easily caught up because i was making more money.

[barryhussein]

It's funny to hear the talk about bad loans. I've been reviewing a number of real estate contracts, and they are all basically the same format. To say they did not understand is a lame excuse.

[dc1225]

Originally Posted by RampageInAZ

I know credit is a touchy subject, but I have questions and concerns.

I currently live in Austin, TX. Texas is one of the few states where creditors cannot garnish wages, period. (student loans, taxes, child support, can be taken, though)

In the latter half of 2007 I had severe financial difficulties, which essentially resulted in my credit accounts going bad and my score dropping from around 700 to god knows what.(450?)

Things are a tad bit better know. Tried to work with some creditors, to no avail.

Next year, I may move to AZ due to better opportunities with my company.


My concern: I am aware that in AZ, creditors can garnish up to 25% of your after tax income. My question is, how common do creditors actually go this route, and is there any way for the debtor to fight it?

Anyone here brave enough to discuss their bad credit, and let me know if this route is being used fairly often by creditors in AZ?

I know it depends on the actual collector, and the amount, and things like that, but I want to get a general feel on this.

For anyone wanting to lecture, I know I screwed up, and I will be dealing with this for years to come, I already beat myself up enough over it.

Thanks everyone for your help and input.

try www.incharge.org
the creditors will not work with you but they will work with company like this. Give them a call and see what they can do for you.

[sassieb75]

Originally Posted by w1ngzer0

damn my fiancee's computer. I had this large paragraph typed and poof, it went away. Let's just say Chase and Subuaru wouldn't bother giving me a chance to catch up. Talking to their financial people isn't any better.

I could not afford a big car loan. I could afford a $5000 car loan and handle the payments because they would end soon. Instead, the state requires you to buy a car worth $10,000 to qualify for a loan. I couldn't afford $10,000 or more, as a car loan. I needed a car, so i got the higher loan.I got stuck. I was living paycheck to paycheck, making payments on time. I was 3 years into it with no problems, when i was laid off. Couldn't find work for a couple months and was screwed.

Talked to them multiple times over the phone about the situation and refused to work anything out. I could have easily caught up because i was making more money.

So, did they repossess(sp) your car? How long did they wait? I have heard of people getting reposessed after being 1 week late.(why don't I know how to spell that word)