A wage garnishment is the term used to describe when a court orders your employer to withhold a determined amount of your pay and send it instead to the person or institution you owe money to, until you have completely paid your debt. Your wages may be garnished if you owe child support, student loans, or back taxes.
What can you do to avoid wage garnishment?
Set Up A Payment Plan: If you fear or suspect that your creditors may be gearing up for a garnishment of your paycheck, you have a good chance at avoiding this by contacting them first and setting up a payment plan. This will be easier for them than going through the hassle of garnishing your wages and will give you more say in how much you pay at a time.
File For An Exemption: In the event that you are unable to set up a payment plan before you wages are garnished, you have the ability to file a petition for exemption. If you meet the criteria you will be exempt from paying either a portion or entire debt due. If you have back taxes and wish to file for an exemption, working with Enrolled Agent, Sandra King can help you petition for one.
Contest the Order in Court: You have the option to take your case to civil court and contest the order in front of a judge. The advantage to contesting in front of a judge is that you are given the chance to explain why you do not feel you should be responsible for the debt.
File For Bankruptcy: While filing for bankruptcy is never an ideal situation, you may be able to escape garnishment by filing. This is because bankruptcy protects your income while the case is pending in court, this prevents creditors from collecting the debt you owe them.