IRS Tax Lawyer's Blog

Do you know what wage garnishment means? How it can affect your salary or your life? If you have no knowledge whatsoever about wage garnishment then this article is for you so that you can be aware how it can be your worst nightmare.

Wage garnishment is being ordered by the court which your creditors requested in order to get the money that you ignore to settle or keep on disregarding for years. Although wage garnishment works depending on what state you are in, but still your employer will be inform of the wage garnishment and portion of your salary will be withhold in order to pay to your creditors. The amount of salary being withheld also depends on what state you are in but by law only 25% of your salary must be withhold for the reason that the court also has to ensure that you have enough for your basic needs.

Your creditor must first inform you of their plans of filing for a wage garnishment so that they can get their money back. However, if you receive letters from them, you need to contact your creditors if you want to reach an agreement so that wage garnishment can be prevented but if you keep on ignoring their letters and their demand your creditors has no choice but to file for a wage garnishment. As a rule you have 30 days to enter an agreement with your creditors, don’t forget you need the service of your tax attorney.

If comes to worst and you cannot be able to pay your creditors you can also go to court and plea your situation and with the help of your tax attorney, you can provide proof why you cannot pay your creditors and wage garnishment can worsen your situation.

However if the court rules against you and give order of wage garnishment, then you have no choice but to let wage garnishment happen or you can file for a bankruptcy in order to avoid wage garnishment. But you have to make sure that bankruptcy is your last resort to stop wage garnishment because if not, bankruptcy can also ruin your life for the reason that when you file bankruptcy, you cannot be able to get help from any credit company or bank if you need money to start for your new life.

Wage garnishment can be difficult to handle but if you can be able to negotiate your way out, all you have to do is face your creditors and ask for a settlement so that your salary can be safe from being garnish. If not, wage garnishment will stay on your salary until all your debts are paid plus the penalties and the interest which it takes years to repay your debt. So, which one you will choose stop wage garnishment by negotiating for settlement or bankruptcy which all your debt gone but no longer eligible to get a loan from any credit company or banks?