If you've had the misfortune of receiving debt collection calls or notices in the mail before, then you've probably been warned that your creditor may file suit against you if you don't pay. What you may not realize is that once a lawsuit gets filed against you, you generally have some time to appeal the judgment. If you don't, then your creditor may be allowed to begin garnishing your wages.
If a wage garnishment is put in place against you, and it's never happened before, you likely have a lot of questions about the process -- and the options you have moving forward.
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.