The last step for a lender or institution who has otherwise been unable to obtain payment or communication from you is levying of your bank accounts or wage garnishments. Trust me, you do not want to be in this situation.
Your finances and the amount of money you have available for basic necessities and to cover other bill obligations would be significantly affected when your wages are garnished. Once the garnishing process has started, there are ways and steps you can take in order to end the process and some of them are listed below.
Consult with a Lawyer
Do not hesitate to consult a lawyer immediately your wages are being garnished or your bank accounts frozen. Laws regarding garnishment of wages vary from state-to-state and you will want to get ahead of the problems before you exceed any time limitations or miss any windows of opportunities, therefore, act as soon as possible.
Be sure to consult with a consumer law attorney for your legal assistance as they will be more familiar with the law surrounding this area and can better help you navigate everything. If you’re concerned about the cost, most lawyers in this area have reduced pricing available based on your financial situation.
Garnishment Due to Consumer Debt
Debts that are owed as a result of purchasing goods or services that are able to appreciate in value is called consumer debt. You will need to respond typically within a few days in order to halt the proceedings if you are notified intent to garnish your wages or levy your bank account. It is usually required of you to attend a court date and present your case to the judge at which time the judge can cease the garnishment, reduce the amount being garnished or keep the current garnishment in place. You will need to prove an inability to meet the purchase of necessities with a wage garnishment.
Garnishment Due to Alimony and Child Support
If your wages are being garnished due to unpaid child support or alimony, you’ll need to go through a different process than a consumer wage garnishment. Child support and alimony garnishment proceedings are unique to your particular arrangement with your spouse or the child’s other caretaker. It’s best that you contact your family or divorce attorney in this case.
Garnishment Due to Student Loan Debt
Make sure you respond before 30 days if you are notified of wage garnishment by you and your student loan tender. See if you can qualify for a loan modification to help you afford your debt repayment by contacting your lender. Consider looking into government student debt programs that can help restructure or forgive some or all of your debt if your loan is a private one. If you don’t qualify for government assistance or a loan restructure, you can request a hearing and plead your case in court. You will need to show that you cannot afford a wage garnishment and a judge will cancel it, keep the garnishment in place, or restructure the garnishment so you can better afford it.
Garnishment Due to Tax Debt
What the IRS do is to levy your accounts or garnish your wages if you have stopped payment t them for an extended period of time. They will do so if you have not attempted communicating with them concerning the issue. The best solution is to always communicate with the IRS if you are facing problems with keeping up with your tax. You can speak with the institute and arrange a payment plan you can afford and request the garnishment be revoked provided you find yourself in this kind of situation. You can contact the franchise tax board in your state and request assistance in arranging an alternative payment plan due to financial hardship if you are unable to work anything out with IRS.