If you were to research what happens when an account goes to collections, you'd find that creditors generally only try to work out a payment arrangement with you for a short period before they pursue other legal options to recover what you owe them. One option that creditors commonly pursue is garnishing your wages. While filing for bankruptcy can put an end to wage garnishment, there are other options that can help you achieve the same result.
The deeper that you get into debt, the more serious the consequences become. One of the most serious is wage garnishment.
People end up in debt for many reasons. Most of them, such as bad investments or big purchases, happened because people tried to make life better for themselves and their families. Life can feel a lot worse when extreme debt leads to wage garnishment.
Having your wages garnished is frustrating and difficult to cope with when you're already struggling financially. What happens, however, when you aren't actually an employee? If you're an independent contractor who works for yourself, does a garnishment order still apply?
You know you're behind on your bills. You want to pay them, but you just don't have the funds.
If you are facing a wage garnishment to settle a debt, your finances have likely been in disarray for some time. Ignoring the problem will not make it go away, so it's time to take the bull by the horns and decide on a course of action.
Making financial ends meet is difficult enough, but when you get behind on debt payments and a creditor secures a wage garnishment order against you, your financial circumstances can get particularly rough. Fortunately, you may be able to stop wage garnishment in its tracks by filing for bankruptcy. Those who qualify from the bankruptcy process will benefit from an "automatic stay."
The human relations director at your work brings you a sealed envelope.
Banks and creditors are not the only entities who may wish to garnish a debtor's wages if they have owed a lot for a long time. One of the dangers for certain debts is that benefits from the Social Security Administration (SSA) may be withheld as well as other income.
Debts can destroy dreams as easily as they take away vital assets from people and families. Ohioans have had more than their share of experience with debt, as the loss of industry and the worldwide recession hit the state's middle class hard.