Wage Garnishment and Bankruptcy
Posted on October 12, 2012 King and King Bankruptcy Attorneys
It’s a creditor’s job to collect on a debt. One of the most
effective collection methods is wage garnishment. By garnishing wages, the
creditor does not have to be concerned with the debtor’s willingness to send
payments or pay the debt in full. The money is simply taken directly out of the
debtor’s paychecks. Typically, a lender will not resort to wage garnishment
until other collection methods have failed and the debtor has demonstrated an
unwillingness to pay.
When a creditor threatens to garnish wages, a debtor often
feels little can be done to prevent it. Working out a payment plan is one way
to convince the creditor to refrain from garnishing wages.
Filing for bankruptcy is another option a debtor has to take
control of debt. Filing for bankruptcy will also immediately stop wage garnishment and will completely prevent the
creditor from garnishing a debtor’s wages.
Is Wage Garnishment the
Best Option for Creditors?
According to a recent study, states that do not allow or put
drastic limitations on a creditor’s ability to garnish the wages of debtors
have lower rates bankruptcy filings; 42 percent lower according to the study. A
creditor may be less likely to collect on a debt if a debtor files for
bankruptcy.
However, the current economic recession has put creditors in
the position of actively pursuing wage garnishment as a method of collecting on
the debt owed. The recession has made it harder for debtors to repay debts and
wage garnishment puts a creditor in first position to collect on a debt when
there are multiple creditors.
If you are in debt and being threatened with wage
garnishment contact an experienced Atlanta, Georgia bankruptcy attorney. King
and King bankruptcy attorneys can help you understand all of your options to
prevent wage garnishment and other collection efforts while helping you
understand your options for taking control of your debt. Call us today404-524-6400
