Negotiating Wage Garnishment: Is It Possible?
Various strategies are available to stop wage garnishment and negotiate with creditors to settle debts, including seeking assistance from a credit counseling organization that can offer financial advice and debt repayment assistance. Sometimes creditors will agree to settle the debt if it can be demonstrated that your income does not cover its full repayment obligation; however, this may prove difficult if garnishments have already taken place against you. The Pope Firm – the #1 rated bankruptcy attorney in Johnson City, TN, has prepared this guide to consult you on negotiating wage garnishment.
What Do You Need to Know About Wage Garnishment?
Wage garnishment is a legal process where your employer withholds a portion of your earnings to pay off outstanding debts. It typically occurs after a court order, following a creditor’s lawsuit. Understanding your rights is crucial; federal law caps garnishments at 25% of your disposable income or the amount by which your income exceeds 30 times the federal minimum wage, whichever is less.
State wage garnishment laws may offer additional protections. Act quickly if facing wage garnishment is important, as it can severely impact your financial situation. Knowing the types of income exempted from garnishment, such as Social Security and disability and retirement benefits, can help you protect your finances. Seeking legal advice or consulting a credit counselor is advisable to explore your options. You can also get help for the creditor’s harassment.