How to Stop a Wage Garnishment?

Are you aware of the fact that a creditor can sue you if you have lapsed your payment for a very long time? When a creditor files a case against you in the federal court and wins the same, the court grants him the writ of garnishment.

According to this writ, the court issues an order to your employer to garnish your wage by cutting a certain amount from each of your paycheck and remitting it in the account specified in the legal notice. Once your employer receives a writ of garnishment he has to follow the directions given in the writ because it is a legal order from the court of law.

No pleading with your employer will stop a wage garnishment. However, you can reverse a wage garnishment, though it is a Herculean task. If a huge chunk of your monthly income is being used as a garnishment and if you find it difficult to meet the basic necessities of life, you can file for Claim of Exemption with the court that had issued the writ.

You would have to fill an application form and attach the necessary documents, such as income proof, utility bills, and loan application number(s) (if you have taken any number of/different types of loans) along with the exemption application form. If the court is convinced about your problems, it has the authority to exempt you from this legal order.

This process can be stopped if you talk to your creditors directly. Do not ignore any letters or phone calls of your creditors; take time off to talk with them directly or through their lawyer for an amicable settlement of the debt. If needed, give them post-dated checks as surety that you would clear off the credit amount in stipulated installments.

Get to an agreement with your creditor before he files for garnishment. If your creditor or creditors are not ready for settlement outside the court, you can meet a debt counselor for a debt counseling session. He will look into your problem and may suggest to file a consumer proposal in local court. This is an alternative to filing for bankruptcy.

A consumer proposal is a legal procedure administered by a federal court and this is a proposal to the creditors regarding the settlement of the credits. This form of settlement is best suited for a person who has a debt over and above USD 5000.

A wage garnishment obtained by your credit card company, local credit union or a bank can be stopped when you file for a consumer proposal with your local court because a consumer proposal will give you certain time duration to repay the creditor wholly or partially.

You can also stop this by applying for a debt consolidation. A debt consolidation loan would help you to settle all your debts at one go. Remember, since you have a bad credit score and credit history you would have to pay a hefty interest on your debt consolidation loan. The last resort to get out of your debts is to file for bankruptcy.

Though bankruptcy would blemish your credit report for the next ten years, it will make you debt free to a certain extent. To improve your credit ratings you can apply for a bad credit loan and make efforts to pay off the same without any lapses. Your creditors cannot file a suit against you for wage garnishment if you have filled for bankruptcy.

Avoiding your creditors is not going to solve your debt problem. Instead, it can aggravate the problem if the creditors file against you. An effective measure to avoid this problem is by dealing honestly with your creditors by replying to their letters and emails.