Can A Debt Collector Garnish My Wages?
If you fall behind on your payments to a creditor
, the creditor may turn your account over to a collection agency. Debt collectors working for the collection agency will begin to call you, and they may even threaten to garnish your wages. Even though you did not originally borrow the money from the debt collector itself, it still has the power to garnish your wages in most states.
To legally garnish your wages, debt collectors must file a lawsuit against you and obtain a judgment from the court that allows them to employ such extreme collection practices. After the debt collector obtains the judgment from the court, you will typically have one more chance to pay the amount in full. If you cannot afford to pay or you choose not to do so, the debt collector can go back to the court and obtain a court order to garnish your wages. It is up to the court to decide whether to grant the order.
If a debt collector is able to obtain a court order for garnishment, he will submit the order to your employer. When your employer receives the court order, the law requires him to comply. However, only a limited portion of your wages are subject to garnishment. The exact percentage a debt collector can take depends on state law.
State laws differ with regard to garnishment. Some states have means tests in place for garnishment, which means that debt collectors can only garnish your wages if you earn at least a minimum amount of money or if you have a minimum amount of resources available. If you do not pass the means test, your wages are exempt from garnishment. Furthermore, if you file for bankruptcy, all existing garnishment orders become invalid, and debt collectors cannot legally pursue new garnishment orders. Finally, some debt collectors may be unwilling to pursue a garnishment order because doing so often involves hiring a lawyer. If your debt is small, hiring a lawyer to collect it would cost more than a wage garnishment is worth.
If worry that your wages may be garnished and you need debt relief now, contact CreditNowUSA to learn more about your options.
Your credit score is the number potential creditors use to determine how reliable you will be as a borrower. If your credit score is good, the creditor will assume you are a good risk to take. You will be approved for the maximum loan amounts, and you will be offered the lowest possible interest rates. However, if you have a low credit score, you wont be able to borrow as much money, you will be quoted higher interest rates, and you may even be denied credit altogether. For this reason, knowing your credit score is very important.
Knowing your credit score allows you to monitor your credit activity and improve your rating when possible. For example, if you find that your credit score is lower than you would like, you can view your credit report to determine the cause of your low rating. You can then take action to improve the score over time. In some cases, you may even find that false information on your credit report is causing your score to be lower than it should be. In such cases, you can petition the credit bureaus to remove the false information and make the necessary changes to your score.
If you monitor your credit score regularly, you will know immediately when your financial activity lowers your rating. Credit scores may be lowered for late payments, new debts, insufficient credit history, or inquiries into your credit history. When you learn that your credit score has been lowered for one of these reasons, you can take steps to ensure that it does not happen again. Furthermore, monitoring your credit score can often help you identify credit fraud and identity theft. If you notice a sudden change in your score and you find strange information on your credit report, you can identify the responsible party, stop him in his tracks, and repair your credit report as soon as possible.
For more information, go to Collection Practices at http://www.creditnowusa.com/Collection-Practices
by: Money Lender
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