Wage Garnishments

Written by Brett Bruce

In some cases, creditors can have your wages garnished to collect a debt. This means that money is taken directly from your wages by your employer and sent to a third party who sends the money to your creditor.

When you’ve got unsecured debt such as credit cards, the only way a creditor can have your wages garnished is to sue you first. That’s why so few creditors actually go this far to collect money. However, if you owe a large sum this is more likely.

The creditor actually contacts your employer to make the arrangement. Up to 25% of your wages can go to your debts, leaving the rest for your paycheck. Before wages are garnished, you’ll receive a notice from your employer letting you know about it. Once your collection gets to this point, there’s not much you can do about it. It’s best to prevent it by negotiating directly with your creditors. Sometimes you can negotiate to make payments before they actually start garnishing your wages.

Another thing you should know is that your employer can’t fire you because of your garnishments. Federal law protects you from being let go because of this. While you may be embarrassed by your predicament, it shouldn’t cause you to lose your job.

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