A wage garnishment is a court order that establishes an amount of money that must be deducted from your wages, on a weekly or monthly basis. This deduction can be for anything from unpaid child support payments to back taxes owed. It may seem like there is no way out of this situation, but you can negotiate with the company who has obtained the garnishment order against you. There are several factors involved in determining whether they will agree to negotiate with you, including how much money is owed and if they have any other creditors waiting in line behind them for payment.
What is a Wage Garnishment?
What is a Wage Garnishment? A wage garnishment is a form of debt collection in which the debtor’s wages are withheld as a result of court order. In some cases, creditors can also garnish other types of income, such as bank accounts and pensions. A wage garnishment usually happens after an individual has defaulted on payments for more than 60 days and they owe more than $10,000. The creditor files what is called a garnishment summons with the court and then the court issues an order to withhold wages from the debtor’s employer. The maximum that can be withheld from each paycheck is 25% of disposable earnings or the amount by which disposable earnings exceed 30 times federal minimum wage, whichever is less.
What are the consequences of a wage garnishment?
What are the consequences of a wage garnishment? The consequences for a wage garnishment can be severe. The first major consequence is that you will not have any income coming in, which can lead to financial instability and debt. You may also lose your home or vehicle during this time as well as other assets.