“How do I stop wage garnishment?” That’s the question you ask when you don’t pay your debts and your creditor is to garnish your wages.
According to the Title III – Consumer Credit Protection Act (CCPA), wage garnishment occurs when an employer is required to withhold the earnings of an individual for the payment of a debt. Garnishing wages are an option that creditors may want to take to get their money back after many attempts to collect debt fail. In fact, creditors will choose this option when nothing else works.
When faced with garnishment you will be forced to pay a certain part of your wage, taken directly from your weekly paycheck. If you’re trying to run away from your debt and are now worried about wage garnishment, there are ways to stop it. Consider the following ways to stop wage garnishment and keep all of your paycheck.
Call Your Creditor
The first thing that you can do is call your creditor or lender. Speaking to someone on the phone will start to rebuild the relationship that you have on getting your finances in order. If you’re not aware of the options available to you, this is the time to get that information.
Call and plead your case and simply ask for a change in the way that they are receiving their money. It might take a bit of coaxing, but you can strike a deal if you’re honest and direct. If they decline at first, that’s ok, try again in a couple of weeks.
This legal document is something that most people aren’t even aware of. This option is a legal settlement that forces lenders to allow you to pay back your debts in a way that is not going to put you into bankruptcy.
You have to go through an intermediary, and if the majority of your creditors agree, you will successfully thwart any garnishments that are made on your wages.
This is an extreme option that most people won’t want to do, but if you’re serious about protecting your finances, you’ll have to make sure to file personal bankruptcy. All unsecured debt goes away, and all garnishments once again stop.
Make sure that you are well aware of the damage this might cause to your credit history, and understand that you’ll have to fight to get your credit history back into proper light.
Get Help from a Pro
If you’re in the stage of difficult financial struggles, and the economic downturn continues to push you against the wall, consider the above tips to help you. However, if you’re not sure which option to take consider getting help from a pro.
Getting proper help is important, as it is the only thing that can save you from further going down the spiral that can be created with unsecured debt. Protecting yourself might seem daunting, but it’s the most important thing you can do to get yourself moving into action.
Depending on your needs, consider asking for more information from a professional that deal with debt consolidation or credit counseling. Wage garnishment is one of the most inconvenient and embarrassing ways for you pay off your debt. By seeking help from a pro you’ll be able to stop wage garnishment and get out of debt soon.