How does a debt escalate into wage garnishment?
Because of past mistakes I have a lot of debt from 3-5 years ago. One of the bigger bills resulted in having to garnish my wages (which i HATED but knew i had to pay). I am really trying to pay off a lot of my debt now but since my credit is so bad i can’t qualify for any loans. I am scared that i’m going to get my wages garnished again! Does anyone know how the whole wage garnishment process happens? How do they determine to do that?
thanks!
I live in California!
thanks!
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Comments (2)
1st – They have to take you to court to prove their case.
2nd- If a judgment is made against you, the creditor then has 2 options. Most logical is to place a garnishment against your wages ( if that is allowed in your State ). Second option, to place a lien against something you own, house, car, etc., If they “find” any valuable property you own free and clear, car, house, boat ( I believe the value has to be a certain minimum) they can obtain a confiscation notice, show up with the Police and take it to sell and apply against your debt.
In some States, a Wage Garnishment will not be honored if your spendable income is under a certain amount, or if the amount to be deducted, puts you under a certain amount.
You need to look into Bankruptcy, if these debts are not credit cards.
Recent laws have made credit card companies able to collect a certain amount of the debt.
Good Luck.
OneDraco hits the nail on the head for the garnishment explanation. However, it sounds like you have a lot of debt that you are finding is hard to pay off. It also appears you are willing to pay off the debt, but you also need money to live on. Since you are living in CA you are probably working two jobs just to make ends meet.
What needs to happen here is you need to know how and when to pay these debts to get them paid off in the shortest amount of time. That will eliminate you from having your wages garnished again. This is not a concept that can be explained here in simple terms.
When I was in debt and on the verge of getting my wages garnished I started doing a lot of research to find out what my options were. I was lucky enought to find a source that helped me with my debt problems. In the past 2 years I have been able to reduce my debt by 80%. Keep in mind I was able to do this without getting a another job because I was already working three at the time.
I would suggest you take some time and get more information on how you can pay off these debts in a pain free fashion. I have included one of the many resources I found to be very helpful below.
Good Luck with you problems.