By Prime Law Hub 
- Cavalry SPV I LLC, a debt buyer, typically cannot garnish wages directly without first obtaining a court judgment against you. Research suggests they often pursue lawsuits to secure such judgments, but evidence shows many cases result in settlements or dismissals if properly contested.
- Evidence leans toward the possibility of garnishment post-judgment, limited by federal law to 25% of disposable earnings or the amount exceeding 30 times the minimum wage, whichever is less—acknowledging state variations and exemptions for essentials.
- It seems likely that responding promptly to a lawsuit can prevent garnishment, as ignoring it may lead to default judgments; however, controversies exist around their documentation practices, with some courts dismissing cases due to insufficient proof.
- Complaints highlight aggressive tactics, but all sides note that validation requests and disputes can resolve issues without escalation, emphasizing consumer rights under the FDCPA.
Understanding Cavalry SPV I LLC
Cavalry SPV I LLC operates as a debt purchaser, acquiring charged-off accounts from original creditors like Citibank or Chase at discounted rates. They then attempt collection, potentially through calls, letters, or lawsuits. If you’re contacted, verify the debt promptly.
The Wage Garnishment Process
Garnishment requires a lawsuit and judgment. Federal protections under the Consumer Credit Protection Act limit amounts, but state laws may offer additional safeguards. Common exemptions include Social Security benefits.
Steps to Protect Yourself
Request debt validation within 30 days. If sued, file an answer to avoid default. Consider settlement or legal representation, as many cases involve disputes over ownership proof.
For more details, see https://www.consumerfinance.gov/consumer-tools/debt-collection/.
Cavalry SPV I LLC is a well-known entity in the debt collection industry, often purchasing delinquent accounts from major financial institutions and pursuing recovery through various means, including legal action. Consumers frequently encounter this company when dealing with old credit card debts, and a common concern is whether Cavalry can garnish wages to collect. This article provides a comprehensive overview of the legal framework surrounding wage garnishment by debt collectors like Cavalry SPV I LLC, drawing on established statutes, court precedents, and regulatory guidelines. It explains the processes involved, recent developments, and implications for affected parties. This is for informational purposes only and does not constitute legal advice; consult a qualified attorney for personalized guidance.
Introduction
Cavalry SPV I LLC, an affiliate of Cavalry Portfolio Services, specializes in acquiring charged-off consumer debts—typically credit card or loan accounts that original creditors have written off as uncollectible. These debts are bought in bulk at a fraction of their face value, after which Cavalry attempts to recover the full amount plus interest and fees. In recent years, with rising consumer debt levels, companies like Cavalry have intensified collection efforts, leading to thousands of lawsuits annually. This matters now because economic pressures, such as inflation and job instability, have increased default rates, making more individuals vulnerable to collection actions. Primarily impacted are everyday consumers with past-due credit accounts, but small businesses and employers can also face administrative burdens from garnishment orders. Understanding your rights can prevent escalation and protect your financial stability.
Background & Legal Context
Cavalry Portfolio Services was founded in 2002 and operates as a debt collection agency, with Cavalry SPV I LLC serving as one of its debt-buying arms. Headquartered in Valhalla, New York, the company acquires assets from banks like Citibank, Bank of America, and Wells Fargo. Once purchased, these debts are pursued under the Fair Debt Collection Practices Act (FDCPA), a federal law enacted in 1977 to protect consumers from abusive practices. The FDCPA prohibits harassment, false representations, and unfair methods, such as threatening garnishment without legal grounds.
Prior rulings, like the 2019 California Court of Appeal decision in Cavalry SPV I, LLC v. Watkins, have addressed issues of debt assignment and liability, emphasizing the need for proper documentation to prove ownership. Similarly, the 2021 New York case Cavalry SPV I, LLC v. King highlighted statute of limitations defenses in collection suits. These precedents underscore that debt buyers must adhere to state-specific rules, such as New York’s requirement for detailed affidavits in consumer credit actions. The legislative intent behind these laws is to balance creditor rights with consumer protections, preventing undue hardship from aggressive collections.
Key Legal Issues Explained
Wage garnishment is a post-judgment remedy where a portion of your earnings is withheld by your employer and sent to the creditor. Under Title III of the Consumer Credit Protection Act (CCPA), garnishment for consumer debts is capped at 25% of disposable earnings (after taxes and required deductions) or the amount exceeding 30 times the federal minimum wage, whichever is lower. “Disposable earnings” exclude essentials like health insurance premiums.
To initiate garnishment, Cavalry must first file a lawsuit, serve you with a summons and complaint, and obtain a judgment—often by default if you fail to respond. This process involves proving the debt’s validity, including chain of title from the original creditor. Rights include requesting validation within 30 days of initial contact, disputing inaccuracies, and asserting defenses like improper assignment or expired statutes of limitations (typically 3-6 years, varying by state). Implications: Garnishment can strain finances, but exemptions protect benefits like Social Security, and employers cannot fire you for a single garnishment.
| Legal Aspect | Description | Key Limit/Exemption |
|---|---|---|
| Garnishment Cap | 25% of disposable earnings | Federal minimum (CCPA) |
| Validation Request | Must be sent within 30 days | Stops collection until verified (FDCPA) |
| Statute of Limitations | Time to sue on debt | 3-10 years by state |
| Protected Income | Social Security, unemployment | Fully exempt from private debt garnishment |
Latest Developments or Case Status
As of early 2026, Cavalry continues active litigation, with filings in courts like Alameda County, California, and New York. In 2025, New York saw a decline in Cavalry lawsuits to 1,493, possibly due to stricter consumer protections or economic factors. Recent cases include Cavalry SPV I, LLC v. McLean (December 2025 settlement breach) and ongoing disputes in Oklahoma and Delaware. The CFPB reports over 2,800 complaints against Cavalry, focusing on invalid debts and aggressive tactics. A 2024 New York Supreme Court ruling in Cavalry SPV I, LLC v. Wilkerson granted summary judgment but dismissed some defenses, illustrating ongoing scrutiny of documentation.
Who Is Affected & Potential Impact
Primarily, consumers with charged-off debts from major banks are targeted, often low-to-middle-income individuals unaware of their rights. Businesses face administrative costs processing garnishments, as seen in Tennessee where policies burden small employers. Possible outcomes: Financial strain from reduced paychecks, credit damage, or asset liens. In severe cases, repeated garnishments could lead to job loss, though protected for single debts. Broader impacts include increased bankruptcy filings and economic inequality, as garnishment exacerbates hardship.
| Affected Group | Potential Consequences | Mitigation Strategies |
|---|---|---|
| Consumers | Reduced income, credit harm | Dispute debt, seek settlement |
| Employers | Admin burdens, legal risks | Comply with orders, no retaliation |
| Institutions | Regulatory oversight | Monitor compliance with FDCPA |
What This Means Going Forward
This highlights the importance of robust consumer protections in an era of rising debt sales. For the industry, it signals potential for more regulations, like enhanced disclosure requirements. Readers should monitor credit reports via AnnualCreditReport.com and respond to any Cavalry contact. Watch for CFPB updates or state law changes, such as expanded exemptions in high-cost areas.
Frequently Asked Questions
What should I do if Cavalry SPV I LLC contacts me?
Request written validation of the debt immediately. This pauses collection until provided.
Can Cavalry garnish wages without a lawsuit?
No, a court judgment is required for private debts. Exceptions apply to federal obligations like taxes.
How can I stop a garnishment?
File a claim of exemption, negotiate a settlement, or challenge the judgment if improper.
Is Cavalry SPV I LLC legitimate?
Yes, but with numerous complaints; verify all claims.
What if the debt isn’t mine?
Dispute it in writing; collectors must cease if unverified.
Can I sue Cavalry for violations?
Yes, under FDCPA for harassment or false claims, within one year.
Conclusion
While Cavalry SPV I LLC can pursue wage garnishment after a judgment, federal and state laws provide significant protections. Staying informed and acting promptly can mitigate impacts. This issue underscores broader consumer rights concerns; remain vigilant through resources like the CFPB.
You May Also Like: Legal and Practical Considerations When Owning a Throwable Axe