Is It Worth It to Pay Your Wage Garnishment?

Should You Pay Your Wage Garnishment?

I often have clients ask me if it’s worth it to pay your wage garnishment. In general, I’ve found wage garnishment costs a lot more than people realize.

But I also find a lot of people have this question because they don’t understand the wage garnishment process. Since wage garnishment can have such a huge impact on your finances, it’s important to understand how it happens and what it might cost you over the long-term.

How Wage Garnishment Works

Wage garnishment is a process of collecting your debt. Essentially, your creditors go to the courts, show that you owe them a debt, and get a court order to garnish your wages. In Tennessee, where our firm is based, they can take up to 25% of your paycheck every single pay period.

Technically you don’t pay it, in that you don’t have a say about when and how you give money to cover the cost. Your creditors take it directly out of your paycheck whether you like it or not. They do so with a court order, which means even your employers can’t stop them. Everyone has to comply until you deal with the debt – either by paying it back or through declaring bankruptcy.

In addition, over time, your debt can grow from court fees, interest, and more. So the longer you let wage garnishment go on, you run the risk of paying far more than you actually owe.

This means you’re only real choice is how you want to deal with the debt. How long are you willing and able to suffer from wage garnishment, and what choices will you make to end it?

One Client’s Example

I recently had a client come to me deep in debt with a wage garnishment. He estimated his original debt was around $2,000-3,000. In 2008, he had judgment rendered against him for nearly $14,000 – several times the original debt.

In our client’s case, he dealt with wage garnishment for 9 years until he finally broke down and came to see us. He had paid over $13,000 toward his debt. But when he came in to our office, his balance was almost $24,000.

He owed almost $24,000 for a debt that started at around $3,000. That new balance included attorney fees, court fees, interest, and other fines. It grew and grew until it became absolutely impossible to pay off.

And the law firm that issued the garnishment is a very good firm with a stellar reputation. So this example wasn’t particularly over-reaching. Just business as usual in the collections world.

We Help Stop Wage Garnishment

Our client’s case was an incredible, real-life example of how difficult it is to escape debt by paying it through garnishment. And we see it every single day.

So if you’re struggling with whether it’s worth it to pay your wage garnishment, the real question is whether it’s worth it to wait on dealing with the debt.

With bankruptcy, you can stop wage garnishment and get relief from losing so much of your paycheck every week. Bankruptcy automatically stops wage garnishment, bans any creditor harassment, and even has the power to end repossession and foreclosure. It offers you a completely fresh start, free of debt, so you can get your life back.

Don’t waste any more of your hard-earned money on wage garnishment. Contact us today for a free consultation, no strings attached.