By continuing your visit to this site, you accept the use of cookies. They ensure the proper functioning of our services, analytics tools and display of relevant ads. Learn more about cookies and control them

Not yet registered? Create a OverBlog!

Create my blog

Wage garnishment: The facts

Everyone loves money, and no one wants it to be taken away unexpectedly. However, this is what will happen if your wages are garnished. The most popular reason for garnishing wages is when a person owes a creditor for an unpaid debt, and refuses to make payments. The creditor sues the consumer, and receives a court ruling allowing the consumer’s employer to “garnish” a portion of their paycheck to pay for the unpaid debt balance.

Types of wage garnishments

Limited wage garnishment A limited wage garnishment is when a person’s entire paycheck is not garnished, only a certain limit can be taken from the paycheck. A limited wage garnishment is helpful because it helps to avoid any future financial problems for the person whose wages are being garnished. A limited wage garnishment does not allow the garnishment to disrupt a consumer’s ability to support themselves or their family. Court judgment garnishment With a court judgment garnishment, a person will not receive any default notices from the creditors in the mail. Instead, the judge will order the garnishment during the original court hearing, and the judge’s order will suffice as the notice. A court judgment garnishment is the most popular garnishment during child support hearing cases.

Avoiding wage garnishment

A wage garnishment is the result of a person failing to pay their debt, and ignoring the debt collector’s phone calls or past due statements. Once this happens, the debt collector takes the matter to court. However, before letting it get this far, there are many steps a person can take to stop wage garnishment. Consult an attorney
One of the best ways to avoid wage garnishment is to seek help from an attorney. A person receiving default notices should always take them serious, and if he cannot afford to pay the entire debt balance, the attorney may be able to reach a deal with the creditor.
Negotiate for a lessor amount
A debtor can always try and negotiate for the wage garnishment amount to be reduced, so the consumer can have some form of income to continue to live on. A creditor cannot garnish all of a person’s earnings. There is a limit to the amount that can be garnished. Only 25% of a person’s disposable earnings or an amount equal to 30 times the federal minimum hourly wage. Get help Wage garnishment is a very serious legal situation, and if a person is faced with wage garnishment he should try to get help from a credit counseling agency.

Same category articles Accounting

How to get the Best cash isa rates

How to get the Best cash isa rates

The best cash ISA accounts enable you to enjoy a tax-free return without putting your capital at risk. High rate savings accounts can be difficult to find in the current financial climate. However, it is important to find a bank which offers the best interest savings account. If you are not currently getting the best online savings rate, you can perform a transfer.
How to use an interest rate calculator

How to use an interest rate calculator

If you are unsure of the effect of debt interest or how much the monthly repayments are going to be each month, it is advisable to use an interest rate calculator to check. Alternatively, you may be attempting to work out how much interest you will receive if you leave money in 90-day online savings accounts for a few years.
How to handle a bad debt expense

How to handle a bad debt expense

A bad debt is an amount which the business failed to collect from debtors because of various factors and is treated as an expense. It is written off when a debtor failed to pay the specific amount and the chances of recovering the money are close to zero after all reasonable efforts to collect the money has been applied.
How to fix your credit score

How to fix your credit score

A poor credit rating makes it more difficult to get approval for a loan, mortgage or credit card. You need to check your credit report for errors and take steps to improve your credit score. You cannot fix credit problems overnight, but you can improve your creditworthiness gradually over time. Paying your debts on time is only part of the solution.