Are Your Wages About To Be Garnished? What To Do
If you've gotten a letter that threatens to garnish your wages, fear is the first emotion you may experience. You might not know how you'll keep your life afloat if money is coming out of every paycheck. The good news is that there are still things you can do to avoid a major disruption of your finances while addressing the debt you owe. What should be next?
Contacting the Potential Garnisher
You might be so uncomfortable with the idea of garnishment that you have not thought of contacting the potential garnisher. The warning letter likely came with contact information, and you can contact them to talk about your debt. They may offer you a payment plan that can ensure you pay the debt while avoiding wage garnishment.
Seek Credit Counseling
Even if your potential garnisher won't work directly with you, they may agree to work with a credit counseling agency. These agencies typically collect a certain amount of money from you and pay all your creditors. They'll likely work on an overall debt management plan to assist you in preventing financial problems, too. Your garnisher might accept a plan with this kind of third-party involvement.
Pay the Debt
Even if you've received a notice that your wages could be garnished, you still have time to pay the original debt in full. Now might be the time to call in help from friends and family. Explore the option of a personal or bank loan, if possible. Take on a second, part-time job. If you can gather the funds to pay, garnishment won't happen.
File for Bankruptcy
Another possibility when you are faced with possible garnishment is bankruptcy. If you've been struggling with bills for some time, wage garnishment might just be the latest financial problem you're dealing with. It may be time to admit that bankruptcy is worth looking at so you can completely rebuild your finances. However, be aware that bankruptcy does not eliminate some debts; federal student loans, for instance, cannot be forgiven through a bankruptcy petition.
Contact a Garnishment Lawyer
After dealing with these issues alone for a while, you may still feel that garnishment is only a matter of time. Before you despair too much, contact a garnishment lawyer. These lawyers are well-versed in garnishment law and working with companies and state and local governments. You might not see a way out of your situation, but a garnishment lawyer can bring a fresh, new perspective and help you avoid garnishment in a way you did not expect. Even if your wages do end up being garnished, a lawyer can be helpful in getting the amount of money reduced.
