Family members involved in garnishment / judgment ?

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Family members involved in garnishment / judgment ?
« on: December 23, 2014, 10:30:05 PM »
I'm looking for some clarification on this issue to protect my parents from a possible garnishment or house lien.

I was involved in a car accident 5 years ago. They called it 50/50 fault at first but after the insurance company cut off the plaintiff , the entire family sued me and it dragged on for years. They eventually found me liable for the accident and because of all the legal fees and experts I was stuck with $140,000 of the bill that the insurance didn't cover. Of course I'm broke and never paid any of it, hence the reason I'm looking at bankruptcy forums. I am largely under employed and only make $12 to $15k as a self employed trainer and it would take me 25 years to pay off this judgment.

Years have gone by and now the plaintiffs hired a lawyer or collection agency who called me and said that my parents savings account will be garnished and a lien put on their house because I live with them and they partially support me by allowing me to live in the basement for next to nothing.

I guess my question is, was the collector right and can they do this ?  I found it BS because he didn't sound very professional but I don't want to take my parents down with me and would rather file for bankruptcy or move somewhere else to protect them. I have the judgment against me and they were not owners of the vehicle and not named in the lawsuit. Can some clarify what the legal is collecting judgments when you live with your parents. Can a garnishment or lien or any enforcement be passed down to people in the same household?

Charles in Hamilton



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Re: Family members involved in garnishment / judgment ?
« Reply #1 on: December 24, 2014, 11:32:30 AM »
Hi Charles,
Your question really is a legal one rather than a bankruptcy or proposal one. Your best bet here is to see a trustee. The initial consultation is free and just costs you your time. My personal opinion is that the bill collector is blowing smoke out his ying yang and is BS but again that is a legal thing. Good luck and Merry Christmas! ;)



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Re: Family members involved in garnishment / judgment ?
« Reply #2 on: December 24, 2014, 02:18:50 PM »
I agree with the previous poster that these might not entirely be bankruptcy questions - you may wish to speak to a trustee. Here are my two cents:

First off, look into the Ontario Limitations Act to see if the colection action is timely. Also, if your parents weren't named in the original judgment, I can't see how the liability would flow through to them simply by virtue of living with them. The first thing that I've always read is "Don't acknowledge the debt", as it can restart the limitations process. If the creditor DOES get a garnishment order, it is governed by the Wages Act. It states that Exemption from seizure or garnishment: Subject to subsection (3), 80 per cent of a personís wages are exempt from seizure or garnishment. R.S.O. 1990, c. W.1, s. 7 (2). Subsection 3 refers to Family Support Orders, which does not apply in this case.

If you go bankrupt, your creditors have an opportunity to oppose your discharge on a variety of grounds mentioned in Section 173(1) of the Act. A portion of the debt will potentially survive, based on what happens at a discharge hearing. You could potentially be bankrupt for an extended period of time. If you own nothing that a creditor could attack (See the Ontario Executions Act for details), a creditor can continue to contact you, but they might not get anything beyond a garnishment order.


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