This is true and in my state you have to be served - if not served Posted: Mar 14th, 2016 - 8:12 pm In Reply to: The only way they can garnishee your wages - is to take you to court.
then the judge can put the case sort of in a pending status or close it without prejudice so the creditor can reserve the right to file it later.
In my case, I had some pretty serious events happen that caused me to stop being able to take care of my debts. I also ended up moving about every 15 months trying to find a place I could afford and/or would work for my circumstances. I was able to do that within my large apartment complex. The creditors could not keep up with my moves and I had one claim closed without prejudice because they could not find me to serve me. A few years later, I got a 1099 (I forget the exact one) where they wrote my debt off but I am supposed to list it as income on my income tax.
What you should know is that even if this happens to you, there is a form to file both with the IRS and with your local court if you cannot pay it. In the case of you going to court by the creditor, there is a form stating you cannot pay it. It is called a hardship waiver. You declare your income and expenses and the judge can waive you from having to repay the creditor. Same for the IRS.
Don't be so scared you don't find out about these things so you are prepared for the worst case scenarios.
Good luck to you.
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