If you are severely behind on your credit card payments, you might be threatened with a creditor wage garnishment.
But what is a creditor wage garnishment? Here are a few facts to understand.
First of all, a creditor wage garnishment is simply a court order that requires your employer to hold back a certain percentage of your paycheck in order to pay off a debt.
This percentage is determined by the laws of the state in which you live, but can be quite detrimental to your monthly income amount.
The garnishment can only last as long as it takes to pay off the whole debt.
Also, in states that have community property statutes for married couples, you can have a creditor wage garnishment placed upon your income if your spouse does as well.
Despite what many collection agencies want you to think, a garnishment cannot happen overnight.
In order for the creditor wage garnishment to be put in place, the creditor must file a lawsuit against you.
There then has to be a court hearing, where a judge can either decide in your favor on in the favor of the creditor.
If the favor is found for the lender that is when a judge can put in place a garnishment upon your income.
Then the paperwork to start the garnishment has to be filed with your employer.
From the time in which you are first notified of the lawsuit until the time the court hearing takes place is usually within thirty days.
Ignoring a lawsuit from a creditor is not advised.
A lot of times, if you fail to be present at the court hearing, the judge will rule in favor of the lender.
During this time, it benefits you to take action to try to get the lawsuit dropped.
Contact your lender to either make other payment arrangements or discuss your financial situation.
In some cases, the collection agency will drop the lawsuit and the creditor wage garnishment will never be made.
Often, if you can prove the garnishment will cause your family specific hardship, they will make other arrangements with you.
The bottom line is, a garnishment is a serious financial calamity.
If you are facing a potential deduction from your paycheck, you need to contact your lender immediately to come up with a resolution before a lawsuit and court date happen.
If not, you are putting yourself at serious risk for an even bigger harmful financial situation.
Now that you are empowered with more information, go out there and take action.
But what is a creditor wage garnishment? Here are a few facts to understand.
First of all, a creditor wage garnishment is simply a court order that requires your employer to hold back a certain percentage of your paycheck in order to pay off a debt.
This percentage is determined by the laws of the state in which you live, but can be quite detrimental to your monthly income amount.
The garnishment can only last as long as it takes to pay off the whole debt.
Also, in states that have community property statutes for married couples, you can have a creditor wage garnishment placed upon your income if your spouse does as well.
Despite what many collection agencies want you to think, a garnishment cannot happen overnight.
In order for the creditor wage garnishment to be put in place, the creditor must file a lawsuit against you.
There then has to be a court hearing, where a judge can either decide in your favor on in the favor of the creditor.
If the favor is found for the lender that is when a judge can put in place a garnishment upon your income.
Then the paperwork to start the garnishment has to be filed with your employer.
From the time in which you are first notified of the lawsuit until the time the court hearing takes place is usually within thirty days.
Ignoring a lawsuit from a creditor is not advised.
A lot of times, if you fail to be present at the court hearing, the judge will rule in favor of the lender.
During this time, it benefits you to take action to try to get the lawsuit dropped.
Contact your lender to either make other payment arrangements or discuss your financial situation.
In some cases, the collection agency will drop the lawsuit and the creditor wage garnishment will never be made.
Often, if you can prove the garnishment will cause your family specific hardship, they will make other arrangements with you.
The bottom line is, a garnishment is a serious financial calamity.
If you are facing a potential deduction from your paycheck, you need to contact your lender immediately to come up with a resolution before a lawsuit and court date happen.
If not, you are putting yourself at serious risk for an even bigger harmful financial situation.
Now that you are empowered with more information, go out there and take action.
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