Are you in credit card debt and worried that you are taken to court by your creditors to have your wages garnished? Do you owe back child support and fear your money might be taken from your paycheck to bring your child support up to date? Are your student loans in default and you don’t know whether garnishment is an option for the lenders?
Legal garnishment of your wages depends on different factors:
the kind of credit
who is legally able to order a garnishment against an individual
the state laws applicable to this type of legal action.
In easy terms wage garnishment is the taking of your wages for a legal debt you owe. Most times a court order is necessary for wages to be taken.
A legal entity such as the IRS can take legal action to recover unpaid taxes.
The employer, in this case the garnishee, must take wages from their employee. This becomes part of the payroll process.
Most states allow garnishment for such situations as defaulted student loans, child support, and unpaid taxes. Many states put a limit to the amount that can be taken from your pay. You must be able to live a normal life.
Going the legal road to wage garnishment is usually considered as last resort. Many times talking with the person you owe money to and making arrangements can avoid this legal action.
Garnishment can hurt your financial reputation. Why let this happen when you can negotiate new terms for repayment to the person you owe money to?
Wage garnishment is taken very seriously by courts and other legal entities. No one likes to garnish some one’s wages. This can take a lot of time and effort. To be honest, it is a fair practice when money is owed for child support for example.
You better consult an attorney so you will know what your rights are. Most offer a free consultation. Good luck and remember that knowing your rights could save your credit rating.
Jenny Miles writes about financial problems such as debt management and bankruptcy. Learn more about your options for how to stop wage garnishment and handle debt collection agencies on her blog.
