One of the unfortunate realities of our current economic times is that more and more people are simply unable to pay their bills. In fact, it is not uncommon to hear about people being threatened with repossession or contacted by overtly hostile debt collection agencies seeking payment on past due accounts.

Unfortunately, hostile telephone calls and threats of repossession are not the only tools at the disposal of debt collection agencies. Many are willing to go to court to secure an order allowing them to garnish a debtor's wages (i.e., take money directly from a paycheck) 

Today's post will briefly explore your rights and your options regarding wage garnishment.

How it works

After unsuccessfully attempting to collect on a particular debt, a debt collection agency may decide to pursue wage garnishment. However, the debt collection agency must first obtain a judgment/order from the court before it can start taking wages.

Fortunately, a debtor can take certain actions to lessen the impact of wage garnishment or prevent it altogether.

By attending the hearing (many choose to forgo this opportunity), a debtor may be able to do the following:

• Ask that the debt collection agency prove the debt (they sometimes cannot do this)
• Challenge the amount owed
• Assert that the applicable statute of limitations has expired

Other Options

Wage garnishment is subject to certain restrictions. For example, certain funds cannot be garnished, including money for child support payments and Social Security payments. In addition, a debt collection agency cannot leave you with inadequate funds to pay for basic living expenses.

If wage garnishment is a real possibility and/or you are facing significant financial difficulties, you may want to consider speaking with an experienced attorney. Chapter 7 or Chapter 13 bankruptcy may provide the fresh financial start you deserve.

The following post was for informational purposes only and is not to be construed as legal advice. Contact an experienced legal professional to learn more about your bankruptcy or debt relief options.

Related Resources:
  
• In Debt? You May Need to Protect Your Paycheck (New York Daily News)