- When you have an outstanding debt that you cannot pay, the creditor will generally turn it over to a collections agency. If you still do not pay the debt, the creditor could file a lawsuit against you. When the lawsuit goes to court, the judge can issue a judgment against you in favor of the creditor. The creditor can then get a writ of execution from the court that will allow the garnishment of your wages. This process involves the creditor working with your employer to set up a payment that comes directly out of your earnings.
- When a creditor sets up a wage garnishment, you may still be able to negotiate with them. If you can agree to a payment plan, the creditor may not proceed with the garnishment of your wages. If you appear in court on your court date, it will seem as if you want to take care of the problem. In this case, the creditor will be more likely to work with you in setting up a payment plan that you can afford.
- If you cannot afford a garnishment and you have other debts as well, you may want to consider filing for bankruptcy. By filing for bankruptcy, you can eliminate any unsecured debts as well as stop wage garnishments. When you file for bankruptcy, creditors have to stop trying to collect money from you. This includes garnishments or any other payment arrangements that have been made. The wage garnishment will stop from the time that you file for bankruptcy forward, but will not give you back any of the money that you have already paid.
- Once you have satisfied the debt that was attached to the wage garnishment, you can cease the payments. At that point, you can send a letter to the attorney of the creditor requesting a satisfaction of judgment form. The attorney can then file the appropriate paperwork with the court to let them know that the judgment has been satisfied. When you go through this process, you need to make sure that you get it in writing so that there are no questions as to whether you paid the debt in the future.
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