What to Know About Garnishments
There are occasions when individuals owe excessive debts such as child support or alimony, local or federal estate taxes, or even back taxes that are
owed to the IRS. In each of these cases, the creditor is entitled to obtain a court order to deduct an amount of their wages in order to satisfy the debt.
When this happens it is called garnishment, and they can vary in different states are in different situations with a person finds themselves in.
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A garnishment is generally done when no other solution can be found. Often, many other attempts to collect the debt have been tried and the issue has
remained unresolved. After all of their attempts have been found unsuccessful then the creditor will find them confronted with no other alternative other
than to turn to the courts. After the case is going to the courts it is then up to them to determine the course of action. If the court finds the defendant
is either unwilling or unable to pay the outstanding debt than they are likely to file a court order to garnish wages.
Aside from these instances that garnishment generally occurs, there are other instances where this may happen as well. One such instance that is subject
to garnishment is past due student loans, which happens quite frequently. When an individual into having their wages garnished it can be a very difficult
time. In difficult times, such as these, wage garnishment can cause severe distress in one's life.
There are laws in place that do protect the debtor from wage garnishment. Many of these laws have been put in place because of past cases where creditors
have been overly harassed by the debtors. Because of this the Consumer Protection Act put stipulations in place to put a cap on the amount the one's wage
to be garnished. There were also several forms including an income and expenditure assessment that are required by debtors to fill out to provide the court.
In most instances, there is a limit of twenty five percent of the debtor's disposable income that is able to be garnished.
Prior to going to the court system, it is a good idea for the debtor to get in touch with the creditor to make a payback agreement. This can be something
that is done without getting the courts involved. This would be the preferred method in order to avoid getting your wages garnished.
There are also ways to fight against wage garnishment. These ways would include, showing documented proof detailing that the debt in question has been
previously settled, providing proof that a prior payoff agreement has been made and that the debtor is current in those payments, the amount owed that
the creditors are claiming is incorrect, or that the debt was discharged in bankruptcy.
Wage garnishments are generally only applied when there are no other options available and no agreement can be made.
