The state of Texas, along with a few other states, may not allow creditors to garnish wages to satisfy debts, except for special circumstances such as spousal / child support, student loans, and federal taxes. A wage garnishment is when a creditor receives permission from the court to withhold payment from paycheck earnings and have [...]
Garnishments are a legal actions enforced by the court to allow creditors to collect on outstanding debt. The most common is wage garnishment when funds are deducted from paycheck earnings. Bankruptcy may stop pending and active garnishment activity against you. When bankruptcy is filed an action called the automatic stay goes into effect. The stay [...]
Credit card companies may file a lawsuit to enforce legal ways to collect from debtors when accounts go unpaid. If the credit card company itself doesn't pursue collection, then a collection agency may decide to pursue if they purchased the debt from the original creditor. Unless you provide evidence that the debt has been paid [...]
Wage garnishment is an action pursued by creditors to help satisfy outstanding debt. The action allows them to take paycheck earnings and have them automatically forwarded to creditors. Bankruptcy may stop the garnishing process and even collect wages that have been garnished under certain circumstances. When bankruptcy is filed the automatic stay goes into effect [...]
What is an IRS Wage Garnishment? IRS wage garnishment , also known as a wage levy, is a forced form of collection imposed by the Internal Revenue Service (IRS). This action takes place when a taxpayer fails to pay taxes. The process allows the IRS to withhold a certain percentage of paycheck earnings to put [...]
Stopping Wage Garnishments Stopping a garnishment enforced by the Internal Revenue Service (IRS) can be done by utilizing several options. The main objective is to settle what you owe in taxes by working with the IRS or a tax expert to determine the best solution for your situation. You can either pay what you owe [...]
Wage Assignments and Bankruptcy Increasing collections costs is prompting some creditors to turn to voluntary wage assignments. A wage assignment is basically an agreement that allows the creditor to deduct from a debtor's wages any amount owed to them. This is most often used by payday loan lenders. Borrowers sign a bunch of paperwork, which [...]
After debt becomes extremely delinquent, the creditor often chooses to sue the borrower and win the right to garnish their wages and/or bank account. But what happens when a debtor has a joint account with someone who is not responsible for the debt? Well, since the debtor's name is on the account the creditors have [...]
Avoiding harsh collections actions such as bank levies, wage garnishments and other asset seizures is one of the reasons that many debtors file bankruptcy. But one of the problems with this motivation is that the bankruptcy is usually filed right on the eve of such seizures, creating a situation where seizures may happen after the [...]
Steps To Wage Garnishment When a debtor falls behind on their credit card bills, aggressive collections actions such as wage garnishment don't happen overnight. The road to wage garnishment and asset seizures often takes months or even years. Below are the steps a creditor takes before they garnish your wages. The creditor will begin calling [...]
