Despite the much you grind to make ends meet, you have to keep up with your loan bills. Failure to this could land you a wage garnishment from your creditor giving you more stressful days than you already have. A wage garnishment means your creditors direct your employer to transfer of part of your salary to them, as a way of repaying the debt you owe. Sadly, this takes place even before you can personally get to receive your salary.
As difficult as this situation may seem, we are here to calm your worries by offering factual options that guarantee cessation of your wage garnishment while still ensuring that you are dealing with your debts.
Facts About Wage Garnishment
- This action is legal and is employed to acquire money on arrears. By means of a court order, the creditor is granted the right to take a portion of your income to facilitate the debt you owe them.
- A garnishment requires the creditor to file a lawsuit against you, receive a go-ahead from the court and prepare a separate petition for the actualization of the action.
- The money cut from your wages goes to creditor via the law court. Those who are exceptional to this case are the credit unions borrowers have permitted a commission of income or the Canada Revenue Agency, which doesn’t require a court order for it to garnishee your wages.
- Another thing that can cause the garnishment of your income is when you voluntary sign an income assignment with a payday loan granter. This is taken as a sign of consent as you apply for the loan.
How do I stop my wages from being garnished?
One of the ways to stop wage garnishment is by having a consumer plan. It’s a law approved debt reimbursement strategy that not only keeps you away from filing for bankruptcy, but it is also great in assisting you to design unique repayment strategies which fit your financial condition, thereby enabling you to repay off debts.
Is it true that bankruptcy stops wage garnishment?
This is true. Filing bankrupt will instantly zap creditor’s phone calls and halt all actions taken against you by lawyers. Although most people opt for it as a plan B, there are certain cases where this strategy best suits a person’s situation.