Have you ever received any notice from the courts saying that they will be implementing wage garnishments to your paycheck? What does this actually mean? Wage garnishment actually refers to legal action by which fractions of the debt you owe your creditors are deducted from your paycheck. The law requires your employer to send a significant amount of your salary directly to the creditors to offset your debt. If you have uncertainties about getting this dreaded court order in the future, here are a few measures you should keep in mind when handling wage garnishments.
- Pay if possible. It is always said that an ounce of prevention is better than a pound of cure. Same thing applies to your debts; it would be amicable to pay them off when you have the resources than wait for the creditors to move through legal remedies in order to force you for compensation. There will be times when even scraping off the bottom of the barrel would not be enough to pay for your debts. With this predicament, you may want to consider borrowing from your relatives or close friends. The idea of paying a debt with borrowed money may seem awkward however, if you can get better payment terms from your relatives or friends then it may be less costly if you take this path as compared to the interest not to mention the penalties of the current loan.
- Try to make arrangements. As the phrase goes, “Communication breaks all boundaries” this may also hold true in dealing with your predicament. It would be best if you try to figure out some form of payment scheme for your debts from your creditors. You can also ask for a restructuring of your debts to make the payments more manageable on your part. When you open the lines of communication, it sends a signal to the creditors that you’re doing something to pay them back as such, it will more likely be easier for you when request for an out of court settlement.
- Debt consolidation. There are financial advisers that can help you to consolidate your debts. They negotiate with your creditors for you wherein they can arrange a payment method by which a solitary monthly deduction will be distributed amongst all the creditors.
- Claim Exemptions. When the courts implements wage garnishment and you feel that it is too much, you can always make an appeal to the courts for a claim exemption. This is when the garnishment gets so much from your wage that it now hinders you to compensate for the basic requirements such as food, utility bills, medical expenses and the like. You are to submit documentary proof of your current living condition and financial situation before the court can pass any amicable decision on the case.
- Bankruptcy. When your back is against the wall, the last remaining option would be to file bankruptcy. Though all legal actions against you by the creditors will then be put to a halt, it will also taint your credit records and may take more time before you can salvage your records. Going through this path may not always be the right choice however, there may come a time that this may be the only choice you have.
The ordeal of going through a predicament such as a wage garnish can be overwhelming. Most often than not, it will drain your budget and will affect your daily living condition. It would be better if you can reflect first as it is for your best interest if you can keep away from the pickle of wage garnishment.