If you've fallen behind on your debt payments, and your creditor has threatened you with wage garnishment, you need to take the matter seriously. Once a creditor threatens wage garnishment, you have to assume that they have the means to carry through with the threat. If they do, you'll lose a good portion of your income until the debt is paid in full. But, there are some steps you can take as soon as you're threatened with garnishment. Here are four of those steps.
Acknowledge Receipt of the Letter
If you've been threatened with wage garnishment, don't ignore the situation. This is especially important if you've already received the garnishment letter in the mail. You might have the letter, but there are still steps you can take to protect yourself. The first thing you need to do is acknowledge receipt of the letter. That means you'll need to call the creditor and let them know that you've received the garnishment letter. Making contact with the creditor can help to buy you some time before they begin garnishment proceedings.
Pay the Debt Off in Full
If you've received a garnishment letter, you still have the opportunity to resolve the issue before your income is seized. One way to resolve the issue is to pay the debt off in full. If you have the funds to do so, talk to your creditor about paying off the debt in full. They may even agree to take less than you actually owe, especially if you're willing to make a lump sum payment. This may require you to take out a loan, or borrow money from friends and family. But, can be a better option than having your wages garnished.
Make Your Own Arrangements
If you don't have the means to pay off the debt in one lump sum payment, you may still be able to avoid the garnishment. Talk to your creditor about making your own payment arrangements. This may require you to make a one-time good-faith payment to your creditor. Once you've made the good-faith payment, you can begin making smaller monthly payments to pay off the balance you owe. Most creditors would prefer to make payment arrangements with you, rather than proceed with the cost of a court hearing.
Dispute the Garnishment
Finally, if you've been threatened with wage garnishment, but you don't believe you owe the debt, hire an attorney right away. A wage garnishment lawyer can help you avoid the garnishment altogether. It's also important to note that you should hire an attorney if losing your income to garnishment would pose a hardship on your family.
