Knowing More About Wage Garnishments, IRS Levies and Legal Holds

Sometimes, people owe debts such as IRS backthan 25% of one's disposable income may be
taxes, federal or local state taxes, back child supportgarnished unless it is in cases of bankruptcy.
or even alimony from a spouse. In this scenario, theIt is also recommended that the debtor make an
creditor obtains a court order to attach a portion ofhonest attempt to contact the creditor and try and
their wages to satisfy that debt. This is what we callwork something out that does not involve the courts.
garnishment and it varies from state to state and fromThis is an excellent way to avoid wage garnishment.
situation to situation.Fighting wage garnishments
Nevertheless, this is done as a last resort. In manySometimes, the debtor may be able to fight off
cases, other means of contacting the individual andgarnishment or legal holds in certain circumstances:
resolving the issue have been attempted and been1. If he (debtor) can provide documentation showing
found fruitless. This is then where the creditor, facedthat he or she has already settled the debt in full.
with no other alternative, approaches the courts for2. If the debtor can prove that there is already an
help. The courts then determine that the defendant isagreement in place to pay the debt and the debtor
unwilling to voluntarily settle the debt and thus ishas not defaulted on the agreement.
subject to a court order to garnish their wages.3. The amount of the debt is wrong.
There are many other occasions that may4. The debt has already been discharged in a
necessitate this. One is delinquent student loans whichbankruptcy hearing.
is more common than people care to imagine.Then there are also times when it is impossible to
Garnishment is as traumatizing as it is embarrassingcollect. These are:
and can wreak havoc especially in tough economic1. When the entity owed is no longer in business or has
times like these.ceased operations.
The good news is that the law that governs2. The death or permanent disability of the defendant
garnishments also protects the debtor in many ways.or in this case the debtor.
This is because of the assumption that the creditorAs we have mentioned earlier, wage garnishments
has a tendency to harass the debtor or to take moreare only used when all other options have been
than is fair. That is why the Consumer Protection Actexhausted. The creditor may have tried to contact the
puts a stipulation that one's wages cannot bedebtor to work out an agreement where he (debtor)
garnished beyond a certain percentage. The court alsocan voluntarily pay the debt but may have failed to
requests the debtor to fill out an income andgain such an agreement. The creditor then turns to the
expenditure assessment form which tells the courtcourts.
exactly how much to garnish. In most cases, no more