Stop Wage Garnishments
Wage Garnishment Attorneys
We often get asked the question, How can I stop wage garnishments? This article should help shed some light on things for you…
In today’s fragile economy, there are more and more people that are no longer able to honor the financial commitments they made during better economic times. Mortgage payments, automobile payments, credit card payments, school loan payments, are among the most common types of debt that many Americans today are struggling to keep current. When it becomes very difficult to make timely payments, and after numerous attempts from the companies that offered credit to collect the debt fail, these companies have some alternatives at their disposal.
Some of these alternatives include foreclosure in the case of a mortgage loan, repossession in the case of an auto loan, and other similar options. More often though, in order to avoid repossession of goods, creditors will choose wage garnishment . Once placed, consumers may often want to identify how to stop wage garnishments or get the garnishment reduced or released. This will allow the person in debt to keep their properties while paying back the debt over time. What is most inconvenient in this process is the fact that the payment is taken against the debtor’s will, and it is taken straight from their weekly paycheck. This means that if your weekly paycheck is $300 after taxes, your creditor will now take a portion of that and put it towards your debt.
Many see this method as a form of ‘forced payment’ and in a sense it is just that. The consumer borrowed money, went into default by not making timely payments, and will now be forced to pay a certain amount from their weekly paycheck.
How can consumers stop wage garnishments and keep more or all of their paycheck? How could debtors get around this inconvenient alternative?
First, the consumer should stop borrowing money right away. As the debt-to-income ratio increases, the ability to enjoy ‘normal’ rights on their loan decreases, and creditors become more doubtful about the consumer. When this happens, the creditor might choose to force wage garnishment upon the debtor that is already very late on monthly payments.
Second, the consumer should evaluate all debt sources, and determine which ones are most at risk for wage garnishment. Some warning signs here would be: very late payments, multiple payments with Insufficient Funds in the bank, multiple attempts from the creditor to collect the debt. Placing the debts that are most at risk at the top of the priority list, the debtor should do everything possible to make timely payments on these debts.
Third, the consumer should try to negotiate a pay-out deal with debtors that are trying to start wage garnishment. There have been cases where debts have been settled for 25 cents on the dollar.
Fourth, the consumer should seek professional help. An attorney (Steven Klitzner Tax Attorney or bankruptcy attorney depending on your needs), a debt consolidation company, a consumer debt company, are examples of what could work. There are also some former IRS officers such as Charlotte Enrolled Agent David Yarborough who has a firm that focuses entirely on tax problem resolution, to include stopping IRS wage garnishments. These professionals will offer the right solutions and will also deal with the creditors directly.
Wage garnishment is one of the most cruel ways for creditors to get their money back, but they will utilize it when nothing else works. This is why it is so important for the consumer to try their best to work with the creditor diligently to stop wage garnishments, in order to avoid this painful alternative.