Are You Getting Garnished?
Garnishment is a legal process that allows a creditor to collect money from a debtor’s wages or bank account. It’s a last resort for creditors when the debtor has failed to pay their debt. In this blog post, we’ll discuss what garnishment is, how it works, and what you can do if your wages or bank account are being garnished.
What is Garnishment?
Garnishment is a legal procedure where a creditor can collect money from a debtor’s wages or bank account to repay a debt. This process is usually initiated when the debtor has failed to pay their debt and the creditor has obtained a court order. The court order requires the debtor’s employer to deduct a portion of their wages each pay period until the debt is paid in full. Alternatively, the court order may require the debtor’s bank to freeze a portion of their account balance and release it to the creditor.
How Does Garnishment Work?
Garnishment is initiated when the creditor obtains a court order. This court order requires the debtor’s employer or bank to deduct a portion of their wages or account balance each pay period or month until the debt is paid in full. The amount that can be garnished is determined by state law and depends on the type of debt and the debtor’s income.
For example, in most states, the maximum amount that can be garnished from a debtor’s wages is 25% of their disposable income, which is their income after deducting taxes and other mandatory deductions. For debts such as child support or taxes, the maximum amount that can be garnished is often higher.
If the debtor’s bank account is being garnished, the bank will freeze a portion of the account balance and release it to the creditor. The bank may also charge a fee for this service. In most cases, the debtor will receive notice of the garnishment and have an opportunity to object to it if they believe it is incorrect.
What Can You Do if Your Wages or Bank Account are Being Garnished?
The Debt Relief Specialists at Debt Medic should probably be your first point of contact in dealing with your garnishment. They can explain your options and tell you how you can get it stopped. Contact us today.
If your wages or bank account are being garnished, there are several things you can do to try to resolve the situation. Here are some options to consider:
- Negotiate with the creditor: If you believe the debt is incorrect or that the amount being garnished is too high, you can try to negotiate with the creditor to reach a mutually acceptable solution. This may involve making a lump sum payment or agreeing to a payment plan.
- File for bankruptcy: If you are unable to negotiate a solution with the creditor, you may want to consider filing for bankruptcy. This will stop the garnishment and give you a fresh start, but it will also have a negative impact on your credit score.
- Seek help from a consumer credit counseling service: A consumer credit counseling service can help you negotiate with your creditors and develop a payment plan that you can afford.
- Object to the garnishment: If you believe the garnishment is incorrect or that the amount being garnished is too high, you can object to the garnishment by filing a claim in court. You will need to provide evidence to support your claim and attend a hearing.
Garnishment is a legal process that allows a creditor to collect money from a debtor’s wages or bank account to repay a debt. If your wages or bank account are being garnished, you have several options to consider, including negotiating with the creditor, filing for bankruptcy, seeking help from a consumer credit counseling service, or objecting to the garnishment in court. No matter what you choose, it’s important to take action as soon as possible to resolve the situation and protect your financial future.