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options after judgment issued - Mandarich Law Group/ CACH LLC


cachsucks
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Hello,

 

I am trying to figure out what options I have to avoid wage garnishments or bank levies after Mandarich Law (on behalf of CACH LLC) issued a Writ of Execution against me.  I have also been issued a Notice of Levy with instructions to the sheriff to levy any accounts in my name.

 

My income is $35K/year from W2 job, less than $500 cash in the bank, $20K in IRA, car is owned valued at $15K, do not own a home, no other assets

 

Judgment amount: $10K

 

Writ of Execution issued on 7/21/14

 

Notice of Levy served 8/15/14

 

I have not responded in any way.

 

I could qualify for a BK7 but I would really like to avoid that.  So far my regular checking account has not been affected, I suspect it is difficult to find because it is a very small local bank with only one branch.  They did find a dormant account that I had with a big bank however there was nothing in it to take.

 

Should I transfer ownership of my car to a trusted friend?  What can I do at this point to make collection more difficult for Mandarich?

 

THANK YOU!

 

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@cachsucks  This may help. From the Sacramento County Public Law Library

 

 
Claim of Exemption - Wage Garnishment
Ask the Court to Stop or Reduce a Wage Garnishment

Wage garnishment is one of the primary ways creditors attempt to collect judgments. The creditor files papers in court to have a portion of your paycheck garnished (taken) to pay off your debt. A creditor can collect up to 25% of your income after mandatory deductions, unless part of your paycheck is exempt under other rules. 

Claim of Exemption (WG-006)is the form you must file with the Sheriff to explain why some or all of the wages the creditor wants your employer to garnish should be exempt (excluded). There are laws and rules that say which types of income or property are exempt. You can read about many of these exemptions in Exemption from the Enforcement of Judgments (EJ-155). An adaptation of this document, with hyperlinks to the applicable code sections, is available on the Law Library's website at www.saclaw.org/pages/exemptions.aspx.  

IMPORTANT:  Once your employer instructs you that they have received an EWO you have 10 days in which to file your Claim of Exemption and Financial Statement with the Sheriff's department listed on the EWO to prevent the garnishment from starting. If submitted late, garnishment will continue unchanged until your claim of exemption is granted by the court or the creditor fails to timely request a hearing to oppose the claim of exemption (in which case the sheriff will consider your claim of exemption granted).

FORMS

The Judicial Council forms commonly used in this procedure are: 

AdobeIcon.pngClick here to download this Guide, with step-by-step instructions, including sample forms.

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I could qualify for a BK7 but I would really like to avoid that.  So far my regular checking account has not been affected, I suspect it is difficult to find because it is a very small local bank with only one branch.  They did find a dormant account that I had with a big bank however there was nothing in it to take.

 

Get your money OUT of that account.  You are going to have to live "unbanked" for a while because eventually they will find it.  Eventually they are also going to force you back into court for a debtor's exam and if you ignore that you can be arrested by the court.

 

Should I transfer ownership of my car to a trusted friend?  What can I do at this point to make collection more difficult for Mandarich?

 

NO.  Any transfer of assets done now can be undone by the court(s) as a fraudulent transfer to deliberately hide assets.  It is way too late for that now.  

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Get your money OUT of that account.  You are going to have to live "unbanked" for a while because eventually they will find it.  Eventually they are also going to force you back into court for a debtor's exam and if you ignore that you can be arrested by the court.

 

 

 

NO.  Any transfer of assets done now can be undone by the court(s) as a fraudulent transfer to deliberately hide assets.  It is way too late for that now.

+1 on all that.

I think that you can file claim of exemption for the wage garnishment, also I think that the POV is exempt. Try looking at the forms here:

http://www.courts.ca.gov/forms.htm?filter=WG

There is a worksheet outlining stuff that is exempt.

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Thank you all for your thoughtful responses!

 

I recently received a letter from Mandarich Law encouraging me to call them and "settle your judgment".  I was thinking about calling them and saying that I recently spoke to a BK lawyer and they advised me i am "judgment proof" and if Mandarich continues to pursue me then I will simply file BK..  I realize this is perhaps a long shot but does anyone see any major downside to me doing this?

 

Also I am a little unclear about the process of the potential wage garnishment.  Assuming they pursue this then I am only notified by my employer?  Meaning there is no legal requirement to send a notice to me that this is in the works?

 

Also assuming there is further action taken such as an attempt to levy an account or seize my car etc are they required to give me notice of their intent to do so?

 

Thanks again to everyone responding!!

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I was thinking about calling them and saying that I recently spoke to a BK lawyer and they advised me i am "judgment proof" and if Mandarich continues to pursue me then I will simply file BK..  I realize this is perhaps a long shot but does anyone see any major downside to me doing this?

 

You are NOT judgment proof because they have one against you.  You are collection proof at the moment but that does not mean that situation won't change at some point.  Many states allow a judgment to be renewed.  They are not just going to walk away simply because you tell them they won't collect.  If it were that simple everyone who loses a lawsuit would do it.

 

There is not really a down side but they won't believe you.  They hear that threat thousands of times per month and until they are actually served BK papers they will simply ignore you.

 

Also I am a little unclear about the process of the potential wage garnishment.  Assuming they pursue this then I am only notified by my employer?  Meaning there is no legal requirement to send a notice to me that this is in the works?

 

Also assuming there is further action taken such as an attempt to levy an account or seize my car etc are they required to give me notice of their intent to do so?

 

California law may require that they notify you of pending wage garnishment but they do not have to tell you before attempting a bank account levy.  If they did that then consumers would simply empty the account out.  

 

Most creditors will not seize a vehicle unless it has equity greater than the amount of the judgment and the state mandated exemption.  The cost of seizing, auctioning, and exemption are not worth the trouble.

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Do get the money out of the bank that you can have loaded tomorrow and if you have direct deposit, buy a bank card from Wal-Mart and have your money loaded on that. They will send out feelers to all the banks in your area and around your address to see if you have an account there. Are you on any kind of disability? If so, that part of the money is also protected.

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Do get the money out of the bank that you can have loaded tomorrow and if you have direct deposit, buy a bank card from Wal-Mart and have your money loaded on that.

 

I am curious..is Walmart the only retail chain where one can buy a bank card to protect funds in the event of a possible levy ??  No I am not in that situation myself but this is for those who for one reason or another refuse to do business with Walmart and they are many.  For years I have heard Kroger has a similar bank card like Walmart but I have checked out their website for those who want to do online banking with them only to see the US Bank logo at the bottom of the page. Guess Kroger wouldn't be an option.

 

http://www.123rewardscard.com/credit/faqs.do

 

FWIW I know there is Green Dot but over the years I have heard mixed reviews about them.

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I am curious..is Walmart the only retail chain where one can buy a bank card to protect funds in the event of a possible levy ??  No I am not in that situation myself but this is for those who for one reason or another refuse to do business with Walmart and they are many.  For years I have heard Kroger has a similar bank card like Walmart but I have checked out their website for those who want to do online banking with them only to see the US Bank logo at the bottom of the page. Guess Kroger wouldn't be an option.

 

http://www.123rewardscard.com/credit/faqs.do

 

FWIW I know there is Green Dot but over the years I have heard mixed reviews about them.

 

AMEX has their own Serve card that functions the same way.

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Also heard very mixed reviews about green dot.

 

There are pitfalls to any pre-paid card but the key to making one work for you is to know exactly what fees are charged so that you can minimize or avoid them  If you avoid the fee harvesting cards (and yes there are prepaid cards designed for this) then you will do just fine.

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