Will Debt Consolidation Stop A Wage Garnishment?

By Phillip Williams on March 13, 2010, 6:02 am Posted in Business News

If a debt collector or creditor decides to sue a consumer for a delinquent debt, the creditor can request that the consumer’s wages be garnished until the debt is completely paid off. A wage garnishment means that the individual who has been sued will lose a certain percentage of their paycheck each month automatically. Once a wage garnishment order has been implemented by a judge, it can be very difficult to reverse; however, applying for a debt consolidation program might help.

Once A Garnishment Is In Place

Once a wage garnishment has been implemented, it may be difficult to reverse; however, a debt consolidation counselor can attempt to negotiate with the individual or company who sued the consumer to begin with. In order for a debt consolidation program to work, all involved parties must agree to the terms. In some cases, as part of the program, creditors will mark a debt as “Paid in Full” on the consumer’s credit report. This may be trickier if wages have already been garnished. In some cases, the only way for a debt consolidation counselor to get a debt collector to agree to these terms is to offer a monthly payment which is greater than the wage garnishment that is already automatically being removed from the consumer’s paycheck.

 

Tips

Speak to several different debt consolidation companies and shop around before sticking with just one company. Ask questions and take notes. Remain upfront with the debt consolidation counselor about the wage garnishment and indicate that the garnishment is something, which should be reversed. Once a garnishment is in place, it can be very difficult to remove. Not all debt collectors will be so quick to agree to the removal of a wage garnishment, because it will take legal proceedings to reverse.

Related posts:

1. Is Filing Bancruptcy Or Debt Consolidation Better For My Credit Score?
2. Debt Consolidation: Can I Still Use My Credit Cards During This Period?
3. How Long Does A Debt Management Or Debt Settlement Program Work?
4. Little Known Advantages Of A Bill Consolidation Or Debt Help Program
5. How Does An Interest Free Debt Consolidation Loan Work?

One Response to “Will Debt Consolidation Stop A Wage Garnishment?”

1. Lonnetika Franklin says:

   July 22, 2010 at 1:12 pm

   How can I stop collectors from taking my check every pay period?