Can Compulosry Debt Payments Be Ordered From My Wages?

By DerrikKyle on May 29, 2010, 6:28 am

There are two major factors used to determine whether or not your creditors can have their debts repaid by garnishing your wages.

Firstly, you have to know the laws and regulation of your state since every state has somewhat different laws. Secondly, it depends on whether your creditors have taken the matter to court.

Each state has laws stating which property is protected from creditors and what can be seized. There are some states that do not allow any kind of garnishment of wages at all.

The states that do allow it have regulations as to how much is allowed to be taken; leaving enough for the person to live on. In some cases though, people find it hard to live off what is left over after the garnishment.

There is also a federal regulation regarding wage garnishment and this law may be followed by some states. Federal debt is not accounted for under these laws. For example if you happen to live in a state that is against wage garnishment, your wages can still be garnished for any federal debts owed such as child support payments or student loans.

Creditors who may seek to have their outstanding debts reduced by garnishment can include hospitals, debt collectors and credit card companies. This will usually be in cases where the debt is large enough to warrant the costs in both time and money of court proceedings.

Paying your bills on time, at least the minimum amounts every month can help prevent your wages from being garnished. If you have to, filing for bankruptcy will also protect your wages from being used. Filing for chapter 7 will immediately stop wage garnishment proceedings and stop any existing wage garnishment; as long as the courts allow for it.

Garnishment can only happen when a creditor sues you in a court of law. What happens is that the court will notify your employer to pay a certain amount of money directly from your check to the respective creditors.

You cannot avoid garnishment if a creditor decides to pursue this course of action. Prevention is the best strategy here – prevent creditors from taking matters this far by making your payments on time and talk to your creditor about financial problems rather than hoping your case will be overlooked.

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