Oxstones Investment Club™Introduction: A wage garnishment is a legal procedure by court in which a fixed amount is deducted from the salary of a person to pay his debt. This amount is deducted by the employer from his salary to pay his creditor. When any creditor files a lawsuit against you and wins it then order is passed by the court to the employer to garnish a fixed amount from your wage every month against your debt amount. While this procedure is going on with any employee then the employer cannot fire them because of the wage garnishment.
Who is covered under wage garnishment?
Wage garnishment is a legal procedure to help creditors getting the debt amount from the debtors. Everyone earning money in the form of salaries, bonuses, wages, commissions or any other amount are liable toward this legal procedure. Even the retired people who are liable toward their creditors have to pay from their pensions. Employers will deduct a fixed amount from your income and will give it to your creditor if they submit the court order to your employer. Thus employer will inform you about the deductions which he has to make according to the courts order.
Exemption of wage garnishment: If a large amount of your salary is deducted as wage garnishment and you are facing problems to fulfill your basic expenses then you can apply for exemption on wage garnishment. You simply need to fill a form with your basic salary slip and the necessity or utility bills of your monthly income and then submit it in court. If court gets convinced then it may exempt you from your wage garnishment.
Some measures to stop wage garnishment:
- You can directly meet your creditor for debt settlement. Don’t ignore his calls or letters. Try to negotiate with them or ask for some more extra time for payment.
- You can contact to debt counselor. A debt counselor will go through your problem and suggest you with certain measure how to make payments or to file a bankruptcy.
- You can also file a consumer proposal in local courts. You can exempt your credit card dues or bank dues with the help of consumer proposals.
- You can consolidate your debt with any other lender. Debt consolidation will pay your whole debt straightly and then you have to pay the new lender later. Large interest rates are charged in debt consolidation as you have a bad credit history because of your old dues. Duration of this loan is lengthy so you have a benefit to pay less monthly payment.
- You can file a bankruptcy which will spoil your credit history for 10 years but your debt will be free to an extent. You can be safe from wage garnishment if you apply for bankruptcy.
Some loans which results to wage garnishment:
- Student loan: If you took a student loan and you are not in a condition to pay toward your student loan even though you are employed then you can be garnished by 15%of your monthly salary toward your due amount. No order for courts is necessary for this garnishment. Your lender can garnish your wage if you fail to pay him regular installments.
- Child support alimony: if you are ordered to pay child support alimony then your employer will deduct the amount ordered by court and will give to other parent of the child. Sometimes even 50% of the earnings are deducted toward child support alimony.
- Back taxes: if you have not paid any of the government taxes properly or on time then your salary may be garnished by your employer and the amount will be send to income revenue services (IRS). They don’t even require any sort of court orders to garnish your wage. They have power to garnish your wage in case of any defaults.
Conclusion: You can talk directly to your creditors about tour problem and find a common solution here www.sbwire.com/press-releases/great-online-lender-offering-installment-loans-for-bad-credit-this-year-199993.htm
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