No. of Recommendations: 0
Asking for a friend...

LSS - friend had some choices to make a few years ago and paid for legal/medical services instead of STATE taxes. Friend does not recommend doing this.

Then there was a bankruptcy filing & discharge.

The state has enlisted a debt collection agency - GC Services to collect the debt.
(still with me?)
Payments were made for 19 months to GC Services.
GC Services recently sent a letter that read We've audited your account and the Payment Plan is up. The rest of the total is due now. $6k

The number one concern is that paychecks might be garnished. I know that wages can be garnished for that reason, but I thought that it had to be done by the revenue agency, not a debt collector.
Is this correct?

Friend lives in NC, the state owed is Utah.

I've advised to Keep Paying As Usual, conduct all conversation in writing, ask for proof that there was a time limit on the payment plan (this is something of which my friend was unaware) and, did I mention?, keep paying...

Any other suggestions?
(aside from paying it off ASAP with every spare penny)


peace & parsley
t
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.