What Is Wage Garnishment?
If you are being threatened with wage garnishment, there are things you will want to learn involving the process, and the legalities of wage garnishment. The more prepared you are, the better you can deal with the process.
You need to know that laws can vary from state to state. There are certain states that may allow garnishment for debts for credit cards, while other will not. Make sure that you are clear on what you are going to be facing during a court date.
There are several things that are allowed to be taken from your paycheck through garnishment. Past due taxes to the government and child support payments are allowed to be garnished in every state.
If there is a judgment filed against you from a creditor, it may or may not be garnished. It will depend on what the original debt was, and the laws of the state you reside in.
You dont need to worry about losing your entire salary. There are specific laws in place that will protect you to an extent and that limit the amount of your check that can be garnished. This is different among the states, so research and find out what percentage applies to you.
The one thing that many people dont know is that you paycheck might be protected, but your bank accounts are not. Creditors can zap every penny from checking and savings accounts. This means that if you have direct deposit, you might want to request a physical check so you can cash it and have money to live on. This will limit the amount of money that can be taken from you without prior consent.
How to avoid garnishment?
If you have been assigned child support you are not likely to get out of having it garnished. There really isnt a reason to not pay child support and there is no way around it. However, if you want to avoid your creditors coming after you, you can attempt to make payment arrangements with them.
Prior to garnishing wages, creditors must obtain a judgment through the court system. Before they proceed with a judgment, they are required to send a letter to attempt to collect the debt. If the letter has demanded payment in full, it is often cheaper for a lender to accept a payment plan than the expense of going through the legal process - and it will be cheaper for you as well.
You need to know that laws can vary from state to state. There are certain states that may allow garnishment for debts for credit cards, while other will not. Make sure that you are clear on what you are going to be facing during a court date.
There are several things that are allowed to be taken from your paycheck through garnishment. Past due taxes to the government and child support payments are allowed to be garnished in every state.
If there is a judgment filed against you from a creditor, it may or may not be garnished. It will depend on what the original debt was, and the laws of the state you reside in.
You dont need to worry about losing your entire salary. There are specific laws in place that will protect you to an extent and that limit the amount of your check that can be garnished. This is different among the states, so research and find out what percentage applies to you.
The one thing that many people dont know is that you paycheck might be protected, but your bank accounts are not. Creditors can zap every penny from checking and savings accounts. This means that if you have direct deposit, you might want to request a physical check so you can cash it and have money to live on. This will limit the amount of money that can be taken from you without prior consent.
How to avoid garnishment?
If you have been assigned child support you are not likely to get out of having it garnished. There really isnt a reason to not pay child support and there is no way around it. However, if you want to avoid your creditors coming after you, you can attempt to make payment arrangements with them.
Prior to garnishing wages, creditors must obtain a judgment through the court system. Before they proceed with a judgment, they are required to send a letter to attempt to collect the debt. If the letter has demanded payment in full, it is often cheaper for a lender to accept a payment plan than the expense of going through the legal process - and it will be cheaper for you as well.
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