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Debt Collector just garnished my accounts!!! Now negative!!

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This is long, but its been a long night.

DH came home and said our debit card had been declined. He went to an atm and it was also declined. He then called our bank 1-800 # on the back of the atm card and was told there was a judgement against our account and a "law firm" was granted access to our account and "took" $2100 out of three accounts. We had $2000 in our checking, which was put on hold b/c of this so now our accounts total are showing negative $6100!!!!

To start the whole thing off, we were getting behind on paying our CITIBANK credit card in like 2003 and thought we should try a budget consoldation company (First mistake), well come to find out they were not paying our bills with the money we were sending them, so in return our account was sent to a lawyer "debt collect/collections" in Dallas for non-payment. We are in Texas. We got in contact with them, set up an account and started paying our monthly amounts. That was 3-4 years ago. Two years ago we moved to Iowa and about 3 months after we moved, we received a letter from another lawyer "debt collector" who was in a another city in Iowa. Our account was transferred to them in Iowa. Well of course 2 years later we move back to Texas and after I moved here something happened with our account again and a payment was missed. I got in contact with the lawyer in Iowa to tell them of our new address and that we had moved. We then set up a new monthly amount that started 6/2006 until the debt was paid in full. Fast foward to today. We have not received a letter or any written communication from them since May of 06, when we agreed to the new amount. I have been paying them monthly within 5 days either early or later than the due date of $50 more a month. I received a call from the Iowa lawyer I want to say in October? Saying that one of the monthly amounts was not paid (They didht have our correct address) and that I needed to catch up. I said I would pay the extra $50 a month and more if I could and they said fine. I have not received any phone calls, letters or any communication and now I am negative $6K with a frozen checking account. Lets add that DH and I both get direct deposit of our paychecks on Wednesday and Friday.

So saying all that and telling the entire story...something just doenst seem right. I have read that in Texas laws, wages can not be garnished. And Shouldnt I have received some sort of commuincation from them? A phone call, email or letter saying that they were doing this or given 30 days or something? I talked to my Mom in banking who said that yes, banks are normally given judgements but its usually when NO payments have been made for 90 days. ALso, shouldnt my account have been moved back to someone here in Texas. How can they impose Iowa laws on me when I am a resident here and have been almost a full year. (We have owned a house here in Texas for 5 years and I have always carried a Texas drivers license and our checking account was never changed to Iowa).

My Dh and I are pulling our hair out and I dont want to be scammed. I havent been able to try and get ahold of anyone at the Iowa lawyers office and Wells Fargo legal office who has all the answers isnt open until Monday.

If you made it this far, thank you!

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