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Wednesday, October 28, 2020

How will I know if I am being garnished?

Posted by admin on May 19, 2015

It is quite an unpleasant moment to deal with when you see your paycheck getting garnished for one of your past unpaid debt. Creditors often use this strategy to recover the outstanding debt from the consumer.

wage garnishment

wage garnishment

As per the laws in most of the states, a creditor can garnish your wages in between 10% to 25% of your disposable income. As per the Missouri state laws, if you are the head of the family, 10% of your wages will be garnished, whereas in Illinois, 15% of your paycheck can be taken away. It does not matter whether you are the head of the household or not.

Are you scared of being garnished for a past debt? Usually the creditor will attempt every possible ways to recover the outstanding debt from the borrower. They are not willing to wait if the debt is of a high amount. There is no set time or amount for a creditor to sue you if its about collecting the unpaid debt. However, it does take time and effort to do so.

If a creditor is threatening legal actions, then he must follow the procedures. They have to go through proper channels before trying to take you to the court. First they have to file a class action law suit against you in regards to the debt. They will try to prove in the court that you owe them a certain amount and get a judgment against you. Once an order is filed in the court, your employer will be contacted and you are on the way of getting garnished. This might be a routine practice for many creditors and a garnishment may appear on your check much before you expected.

There is a time limit for every garnishment to take place. Many creditors try to renew the garnishment until they are able to recover the full balance from the consumer. Because of this, many consumers will be forced to give away a portion of their paycheck for an indefinite period of time. Its quite embarrassing to deal with a garnishment, because it weakens your mental condition and you are not able to properly support and protect your family.

Now, the question is how to stop a possible judgment from taking place? The answer to this question is that if you are on the verge of getting sued by your creditors, then you may want to consider bankruptcy as an option. Once you file for bankruptcy, all legal actions will be stopped and you will be able to pull yourself back to normal life and support your family. This may be the best option to get you and your family out of this overwhelming debt. A bankruptcy can also stop a possible repossession or foreclosure. Basically, it will stop a creditor from taking any actions against you. Before you consider filing for bankruptcy, make sure that you have researched all your options thoroughly.

If its about getting out of debts, there are some serious and tough decisions to be made. Browse through the internet, read as many articles, blogs and bankruptcy FAQ and acquire good knowledge. You can also take free consultation from the professional attorneys in your area who will guide you in the right direction.

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