1. Contact the Debt Collector or Creditor to Negotiate a Payment Plan
You may be able to negotiate a payment plan, or settlement if the original creditor has sold your debt. This is because debt collectors purchase debts for pennies per dollar. You’ve stopped a wage garnishment from happening if you can agree on a plan of payment. But, you will usually need to pay your debt in one lump sum.
It may be hard to negotiate with the original creditor or lender if they have already obtained a court order for wage garnishment. However, it is worth asking. Explain your situation to the creditor. Ask the creditor if you have any options for an affordable repayment plan.
The creditor will not accept a plan if your income and expenses are too high to pay at least the amount of the garnishment. You still have options. Try one of the three other ways to stop wage garnishment quickly.
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2. You Can Challenge a Wage Garnishment in Court
You will also be given instructions on how you can challenge the garnishment in court when you receive the notice of wage garnishment, and you can challenge a wage-grab order by filing paperwork with the clerk at the court where the order was granted.
Act quickly if you intend to do so. You may only have five days, depending on the state you live in, to submit an exemption claim. After that period, your employer or their payroll company will have no choice but to garnish the paycheck.
You may buy yourself some time by challenging the garnishment, but it could also limit or stop a garnishment. If you have income that is not subject to garnishment, then you can contest the garnishment. Social Security, unemployment benefits, and retirement income are all examples of exempt income. If your income is already garnished, you can challenge the garnishment.
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3. Bankruptcy Can Stop a Wage Garnishment
Filing bankruptcy stops wage garnishment fast. How? The automatic stay protects you once you have filed your case. The automatic stay prevents creditors from collecting on debts, even those who have wage garnishment orders.
Chapter 7 bankruptcy can give you some breathing room and a fresh start once your debt is discharged. Chapter 7 bankruptcy will give you financial breathing space and a new start after your debt is discharged.
The automatic stay does not stop all collection activities. However, child support and alimony payments are exempt from this rule. Garnishment orders are still valid for these types of debts even after bankruptcy.
4. You Can Always Get a Help
Consider signing up for free counseling sessions with a local lawyer if you are having trouble keeping up with payments. Remember that a credit counselor will examine your financial situation, and then make recommendations about how to handle debt collectors. You may be able to offer a repayment plan that you can present to the bank that is suing you.
Bottom Line
You can contest the judgment or negotiate directly with the creditor who issued the wage garnishment order. However, you can’t halt the garnishment without their consent. Several methods exist to stop wage garnishment, which can help reduce debt and improve your financial situation.
While bankruptcy can stop wage garnishment, it’s not suitable for everyone. If you need legal advice or have questions about bankruptcy, debt consolidation, or other legal matters, consulting a bankruptcy attorney at Tenina Law is recommended. If you’re ready to file but can’t afford an attorney, our free tool offers a helpful alternative.
