In most states, a wage garnishment for non-payment of debt is approximately 25% of your net, after-tax income.
For most people, this would be FINANCIALLY DEVESTATING!
First, you need to understand how wage garnishment works:
- Your debts become delinquent because of non-payment.
- The calls and letters start.
- If repayment agreement cannot be arranged, the account is charged-off and placed with a collection agency and/or lawfirm/collection agency.
- More calls and letters.
- Again, if a repayment agreement cannot be arranged, the creditor may instruct the collector/law firm to FILE A COMPLAINT.
- Once the file is processed, you will receive a SUMMONS. It states that you have 20-30 days to ANSWER or give cause why you do not owe the debt.
- Again, if a repayment agreement cannot be arranged, then a court date is set, the creditor or PLAINTIFF wins a DEFAULT JUDGMENT.
- Once the JUDGEMENT has been awarded to the PLAINTIFF, they can apply for a WRIT OF GARNISHMENT to your employer.
- Your employer has no choice but to comply with the WRIT OF GARNISHMENT or will face a fine from the court!
- You get your paycheck with an additional 25% reduction!
What can you do to stop a Wage Garnishment?
At this point, you need to contact the attorey for the plaintiff and try to negotiate a repayment agreement called a STIPULATED AGREEMENT.
A Stipulated Agreement is an agreement between you and the attorney/plaintiff/creditor that you will pay so much per month until the balance of the debt is repaid.
You may need to give the attorney financial proof that you are unable to pay, but most likely, they will agree to a plan whereby the monthly payment is something your budget can handle.
If you cannot come to an agreement, then you may be forced to contact a BANKRUPTCY ATTORNEY and seek BANKRUPTCY PROTECTION.