Wage Garnishment? Don’t Let Your Situation Get That Far!

When a creditor serves notice that a portion of your paycheck will automatically be deducted, it’s their last-ditch effort to collect what you owe…and it’s going to hurt. Whether you like creditors or not (and who does, really?), they are perfectly within their rights to take this drastic measure. Of course, they have to have the authority of a court to do it, but rest assured they can do it. In addition to putting a dent in your paycheck, reaching the stage of wage garnishment can also have serious implications where you work. Before the creditor can take wage garnishment steps, they will compel your employer to comply with the order. When that happens, just about every move you make at work will be questioned.

Limits to Wage Garnishment

Under federal law, creditors are limited on how much they can garnish from your wages. For example, the amount is based upon the amount you after your required deductions, such as federal and state taxes. Here in Arizona, the creditors can garnish up to 25 percent of your weekly earnings. Your wages can also be garnished for outstanding child support and alimony, outstanding student loans and back taxes owed.

Don’t Let it Get That Far

Believe it or not, the creditor doesn’t necessarily want to garnish your wages. In fact, you can delay things a bit by simply calling them and arranging for a payment schedule. If you do this, be smart and stick to the plan. It’s tempting to ignore the notices when they begin arriving. But sticking your head in the sand can have serious consequences, because once a judge green lights wage garnishment, there’s no turning back. If you’re having difficulties with your finances and are facing the possibility of wage garnishment, you need a skilled lawyer in your corner. Contact the professionals at Statewide Bankruptcy for a free consultation.