You don’t want a wage garnishment to happen to you

One in 10 working Americans between the ages of 35 and 44 are getting their wages garnished, according to NPR.

Let’s take Kevin Evan’s story for example…

Kevin had a nice 25-year career selling office furniture, and business was good. That is until the recession blindsided him and companies stopped buying office furniture. He lost his income and sold his three-bedroom home that was no longer affordable.

He never collected unemployment, but rather worked a few low-paying jobs for several years. But, with a daughter in college and basic living expenses, he found himself $7,000 in credit card debt.

Fast-forward ahead a little bit, Kevin is working a better-paying job and things are on the upswing. Kevin went on to live happily ever after, right?

That’s not where this story ends…

Kevin recently opened up his paycheck to find a quarter of it missing. Capital One, his credit card company he owed thousands of dollars to, garnished his wages.

Need to stop wage garnishment immediately? We offer ZERO DOWN TO FILE! Call 901-327-2100 to see if you qualify.  

How could this happen? Kevin was making $200 monthly payments to Capital One towards his $7,000 of debt. Oh, the beauty (or lack thereof) of interest.

With the 26% of interest on the credit card balance, his payments barely kept up with his increasing debt, which ended up at about $15,000.

This is what happens now. In the past, the only time people typically saw their wages garnished was if they owed child support. Now, people are seeing their wages garnished for consumer debts like credit cards, medical bills and student loans.

It’s completely legal too. Most states allow creditors to garnish 25% of the debtor’s wages. Once the judgement is handed down to the employer, he or she is required to take it out of the debtor’s paycheck.

This tends to have major effects on the debtor. If the debtor doesn’t have sufficient money to pay the debt, then he or she most likely doesn’t have sufficient money to withstand that 25% wage deduction. On top of that, these things can go on seemingly forever because of the interest rates and fees from the debt.

What a nightmare!

The right thing to do is going to see a bankruptcy attorney BEFORE the wage garnishment begins. When you see you’re in debt and aren’t able to pay it, do something about it – don’t just let it sit there unaddressed.

By filing for bankruptcy, you can discharge your debt through a Chapter 7, or lump it all into an affordable 3-5 year repayment plan. In doing so, you stop the wage garnishment and create a fresh start for yourself financially.

Then, you can take this fresh start as a stepping stone to re-establish and rebuild your finances the right way, including your credit score.

At Darrell Castle & Associates, we not only want to help you get yourself out of debt, but we also want to give you the tools to succeed after. We do this by offering our clients access to a 14-week program called 7 Steps to a 720. This program teaches you the tips and tricks the banks don’t want you to know in regards to rebuilding your credit score after a bankruptcy.

Do the right thing if you’re far behind on your bills and talk to a bankruptcy attorney. You need one you can trust – one who’ll walk and talk you through every step of the process.

My firm has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction, so I can assure you that you’re in good hands.

Call (901) 327-2100 to schedule a free consultation with an experienced attorney, or fill out one of the contact forms on this page.