March 15th, 2010 by Reed Allmand 
Being in debt can be terribly tricky. While most debtors want to pay their bills, their financial situation just doesn’t allow it. But the irony of it all is that when debts are left unpaid over the long term, creditors are able to utilize some of the most damaging collections tools against debtors if given the chance. One of those powerful and yet damaging collections tools is the “wage garnishment.” Many people who have eventually filed bankruptcy have done so either under the threat of or after a wage garnishment was
enforced. Wage garnishments can send an already shaky financial house crumbling to the ground; but there are some things that you can do about it.
- Don’t ignore creditor lawsuits. If you receive notice that you are being sued, don’t just ignore the suit. If you ignore creditor lawsuits they can get a “default judgment” against you and gain access to the dreaded “wage garnishment” tool.
- Instead of ignoring a creditor lawsuit, it would be wise to either respond to the lawsuit with the help of an attorney or to consider bankruptcy. If you respond to the lawsuit, your response may delay a judgment against you and thus delay a wage garnishment. However, if you actually owe the debt, a delay is best result you will get from this tactic. Inability to pay is not a defense in a creditor lawsuit, that’s what bankruptcy is for.
- If you decide to consider bankruptcy, meet with a qualified bankruptcy attorney as soon as you receive the notice of a lawsuit. Once you file bankruptcy, bankruptcy’s automatic stay will stop the lawsuit in its tracks. After you file bankruptcy, the creditor will not have the power to get a judgment or collect on the debt. And once your debts are discharged in bankruptcy, your creditors will never be able to collect.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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