Garnishment Actions: How to Defend Yourself

Are you facing creditors charging you to make payments? Credit card debts and other balances can lead to various complications. It can affect your entire financial future and even your periodic source of income. 

In some instances, creditors threaten their debtors with lawsuits. If they are doing it legally, the court can find you guilty of not paying on time. One typical example is wage garnishment to a debtor due to failure to pay a debt. 

If you see that your wages are on hold or suspect that your bank accounts are garnished, you must act decisively! 

What are the Reasons for Garnishment? 

Different garnishment methods can leave you in a difficult situation. Here are some typical reasons that result in a garnishment process:

Spouse or Child Support

Wage garnishment can happen to a person if they fail to comply with court-ordered payments. Typically, 50% of your wages will be garnished if the court discovers you are supporting another person or child that the court order does not include. The wage garnishment can increase to 60% if the court order identifies you are not helping other people. 

Bank Accounts

Getting into debts with banks commonly leads to wage garnishments. For example, if a debtor has many remaining balances with their existing Checking or Saving accounts: a judgment creditor has no restrictions on processing garnishments. You can then contact a Judgement Defense Attorney to address complex debt situations. A judgment liens attorney can help you fight against unfavorable odds concerning:

  • Garnishment Processes
  • Loans: (Bank Loans, Auto Loans, etc.)
  • Creditor lawsuits and judgments
  • Repossession avoidance

Federal Tax Debts

No court order will happen concerning wage garnishment if you owe federal taxes. However, the Internal Revenue Service (IRS) will notify you of demanding payment. The IRS will send you a final notice if you fail to respond to these demands. The grace period for an IRS notice lasts 30 days. Failure to pay the levy can result in the agency contacting your employer to begin wage garnishment.

Other Federal Tax Debts

The wage garnishment provision under the Debt Collection Improvement Act of 1996 can authorize federal and contractual agencies to garnish 15% of a debtor’s wages. The 15% will repay any balances a person owes to the federal government. Aside from that, the Department of Education can garnish up to 10% of a debtor’s non-disposable income. 

How to Defend Against Wage Garnishment? 

Creditors won’t usually initiate wage garnishments actions if you fail to pay on time. However, if other collection methods fail, a debt might approach the statute of limitations. It is a period where creditors can enforce debt collection procedures. 

Before a wage garnishment can happen, a creditor can sue you for a court order stating the garnishment process. The court order will show you the entire amount you must pay aside from additional penalties, fees, and interest.

How can you fight against wage garnishment?

Negotiate with the Creditor

In some cases, debtors might be able to pay a debt considerably. As a solution, any debtor can try and reach an understanding with their creditors. For example, you can explain you are earning a given amount of money and can only pay in small increments. Debtors can negotiate a debt settlement and pay the debt in full with a lump sum payment. 

File a Claim of Exemption

If a debtor cannot pay a debt due to temporary financial difficulties or emergencies, they can file a claim of exemption. Referring to your financial situation, a claim of exemption can decrease the total amount of wage garnishment. For instance, some states offer a head of household exemption when they discover a debtor is supporting a child or another person. 

Refinance a Debt

Debt consolidation is the process of getting another loan to pay other loans entirely. It can be a harrowing experience when a debtor has low credit scores and multiple debts leading to wage garnishment actions. However, if you negotiate correctly, debt consolidation can still be a possible solution. 

Conclusion

Debts can lead to different repercussions that affect your entire financial future. Low credit scores, multiple balances, and wage garnishment actions can occur. Fortunately, debtors can perform various methods to deal with garnishment actions effectively. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.