How To Stop Wage Garnishment?

Answer 1

Creditors sometimes seek wage garnishments in order to collect money owed to them by a debtor. The creditor must present their case to a court. The court will then decide whether issuing a writ of garnishment is advisable. If a writ of garnishment is awarded, the court will order the debtor’s employer to withhold a fixed amount of money from each paycheck and deposit it according to the writ’s directions.

Halt Garnishments Before they Begin

The best way to stop wage garnishments is to act quickly and halt the process before the garnishment is awarded. While many people want to avoid dealing with debt that they cannot afford to pay, it is unwise to ignore the situation. In most instances, creditors resort to filing for a wage garnishment only after a debtor ignores all other attempts to work out the issue. Working out an agreed upon payment plan or other arrangement is the most hassle-free solution for both the debtor and the creditor. This will stop wage garnishments before they begin.

Filing Bankruptcy

If a mutually acceptable arrangement cannot be made with the creditor, then filing bankruptcy may be the only option left for the debtor to stop wage garnishments. When a bankruptcy is filed, if puts a halt to any collection attempts. For this reason, it is commonly used to avoid judgments and stop wage garnishments.

Reversing Garnishments

While not completely impossible, reversing a writ of garnishment that has been awarded is an extremely difficult task. The debtor’s only option once a garnishment is in place is to file a Claim of Exemption. This form can be obtained from the local court house, but needs to be filed with the court that issued the writ. A Claim of Exemption basically informs the court that the wage garnishment is causing an undue financial burden. The court will hear the case and evaluate the garnished person’s income and expenses to determine whether the writ of garnishment should be set aside. This is the only way to stop wage garnishments once they are in place.

Answer 2

If you owe money to a credit card company, your creditor can sue you for the amount you owe. If the creditor wins this lawsuit, he can then ask the court to garnish your wages for the amount of the judgment. Wage garnishment is a painful solution to a debt problem because your creditor seizes a portion of your paycheck each pay period, leaving you with less money to pay your bills with. If you would like to stop a wage garnishment, you have several options available to you.

The easiest way to stop a wage garnishment is to pay the full amount you owe before the garnishment takes effect. State laws vary as to how much time you have to do this, but you usually have seven to 10 days after the court enters judgment against you to pay the judgment in full. You have to pay the entire amount you owe your creditor plus all court costs to satisfy the judgment. If you do this within the required time frame, you won't have your wages garnished at all. Even if you miss this opportunity, you can still stop a wage garnishment later by paying what you owe. However, you'll have to ask the court to issue a stop-garnishment order and take the order to your employer. Your employer may mistakenly continue garnishing your wages for another paycheck or two if you don't submit this paperwork to him on time or there's a clerical error. You'll get the money back if this happens, but it can be inconvenient to have to straighten out.

If you can't afford to pay the full amount that you owe, you might be able to work out a deal with your creditors. It's easier for your attorney to do this if you have one. Attorneys can often get a better deal for you because they are skilled negotiators and because they know the law better than consumers do. If you make a deal to pay a certain amount per week or month, make sure to pay it on time so that your creditor doesn't go back to court to get the garnishment reinstated. You may want to write out your budget and determine how much you can afford to pay each month prior to asking your attorney to negotiate a settlement for you. You should also keep in mind that creditors are not allowed to garnish more than a certain amount, depending on state laws. For example, in Tennessee you must be allowed to keep at least $154.50 per week. Don't agree to any arrangement that requires you to keep less than the legal minimum.

As a last resort if you can't work out a settlement that works for you or pay your entire balance at once, you may be able to file a slow-pay motion. A slow-pay motion asks the court to allow you to make small payments each month instead of having payments garnished from your paycheck. You must fill out paperwork stating where you work and how much you can afford to pay. On your court date, you must bring proof of your bills to show the judge so he can determine whether the payment plan you're asking for is reasonable. Your creditor has the right to ask the judge to compel you to pay more than you are asking to pay. The judge will consider your finances and make a decision. He may grant your original motion or grant a motion stating that you have to pay a different amount than you asked for. In either case, he cancels your wage garnishment when he grants the motion.