A wage garnishment because of unpaid bills can be devastating!

Here are 3 easy tips on how to stop wage garnishment:

If you are having a difficult time keeping up with your credit card accounts or other unsecured debt, your not alone!

Over the recent years, hundreds of thousands of people just like you have had to take on more credit in order to survive the downturn in our economy or other financial setbacks such as:

• Loss of employment
• Divorce
• Illness
• Death of a spouse
• Disability
• Too little income from Social Security, etc.

Once you miss a payment to one of your creditors, they will start calling and sending late notices.

You can download FREE INFORMATION ON HOW TO STOP COLLECTION CALLS by clicking on the button below:

TIP # 1: DON'T IGNORE THE CALLS OR LETTERS FROM COLLECTORS!

The biggest mistake I see people make that can lead to a wage garnishment is to ignore the calls and/or letters.

Obviously, if you miss a payment, it is going to trigger a signal to alert the creditor.  Creditors don't necessarily want you to pay off your entire account (they make their money on interest and fees!), but they demand a monthly payment...or they get real upset!

Your account will usually be sent to an internal collections department within the company when it is about 90 days over due.  The collection departments job is to save the account...get you to start paying again.

They may offer you a HARDSHIP PLAN, but BE CAREFUL! 

Most hardship plans will offer you a small reduction in your payment and perhaps your interest rate for maybe, 6-12 months.  Sometimes, they may offer to waive the "late charges and/or over-the-limit" fees they may have tacked on to the balance. However, the problem with a hardship plan is that, while it may stop the calls, you are not really paying down the debt.

Also, once the time period of the hardship plan expires, you are right back to making the normal payments!

TIP # 2: DON'T IGNORE A SUMMONS!

If a creditor cannot get you to start making payments again, they may decide to send the account to a collection agency. The calls and letters will start again as you will no longer be dealing with the original creditor anymore.

Just as you did before, you will need to send a letter to the collection agency to stop the calls.

If the collection agency cannot get you to pay, they may decide to file a complaint with your local courthouse stating that you owe the debt. The court will prepare a SUMMONS, and you will most likely get a know at the door one evening and someone (may be a police officer), will SERVE YOU THE SUMMONS.

Sounds intimidating...and it is! Yet, the worst thing you can do (and a lot of people make this mistake) is to ignore the summons!

The summons will state who you owe and how much, and it will say that you have 20-30 days (depending on your state's laws) to give an ANSWER. An answer is a legal term that you would file if you feel that you do not owe the debt.

In most states, you will have to pay a filing fee and it has to be legally correct in order to file, so you may need to hire an attorney.

Just because you received a summons does not mean that you are going to be sued, or go to jail, or have all of your belongings confiscated...you still have rights!

But what it DOES mean is that the creditor is SERIOUS about collecting the debt.

If you are employed, the creditor could be awarded 25% of your net take home pay until 100% of the debt is repaid with interest (9% in Oregon...each state varies a little).

Call the collection company or attorney representing the collection company and try to work out a SETTLEMENT or a repayment plan called a "stipulated agreement".

If you don't, the creditor will be awarded a judgment by default (called a default judgment), and now they can pursue legal avenues including wage garnishment!

TIP # 3: IF AT ALL POSSIBLE, MAKE AN LUMP SUM OFFER TO SETTLE THE ACCOUNT!

I know, you most likely do not have a lot of money in savings, but let's say the total debt is $2,000 including interest, attorney fees and court costs, they may be will to take 70%-80% to settle the debt.

If you had contacted the creditor before the account went to collections and then the legal process, you may have been able to settle for 50% or less!

We have been helping people get out of debt for many years and would like to help you.

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If you are delinquent in paying your debts, a creditor can decide to pursue all legal avenues including wage garnishment.

But before you panic, understand that a creditor cannot garnish your wages just because you are behind on credit card or other unsecured debts!

Before they can apply for a WRIT OF GARNISHMENT, a creditor will:

• Contact you in writing or by phone in an attempt to collect the debt and/or work out a repayment plan.

• If the creditor's collections efforts are unsuccessful, they will turn the account over to a collection agency.  This collection agency will also contact you in writing and by phone to collect the debt. In fact, they will most likely call you multiple times a day at all hours.  You do not have to put up with this.  To learn what collectors can and can't do read more about Fair Debt Collection Practices.

• If the collection agency's attempts to collect the debt are unsuccessful, they may decide to retain a local attorney to file a claim.  If they are a ATTORNEY/COLLECTION FIRM, they will file the claim themselves.

• If this happens, you will receive a SUMMONS and it will basically state that you have 20 or 30 days (States vary as to how long you have) to "ANSWER" the claim.  An "ANSWER" is you response to the claim if you feel that YOU DO NOT OWE THE DEBT CLAIMED IN THE SUMMONS.

• It usually takes about 45-60 days before a court date is set. NO, YOU DO NOT HAVE TO GO TO COURT.  This is just a formal hearing to award the judgment to the plaintiff (creditor) by default.  Default meaning that you did not dispute the claim.

• With the DEFAULT JUDGMENT, the creditor can now apply for a writ of garnishment.

What happens once your creditor is awarded a Writ of Garnishment?

In most cases, an agreement not to pursue wage garnishment can be negotiated (if you act quickly).

A STIPULATED AGREEMENT would state that you will make a payment every month until either the full amount or a slightly reduced amount is repaid.

Depending on your state of residency, there may be an interest rate limit(Oregon is 9%, Washington is 12%).  Be sure to check your state's limit.

As long as you make your payments on time, the creditor will not act on the wage garnishment.

What types of income are exempt from Wage Garnishment?

The following types of income are exempt from wage garnishment:

• Social Security benefits
• Supplemental Security Income (SSI)
• Welfare or public assistance
• Spousal support or child support
• Public or private pensions
• Veterans benefits and/or loans
• Disability proceeds of life insurance policies
• Cash surrender value of life insurance policies
• and many others

There are also exemptions and limits as to the calculation final amount of wage garnishment.  We have found that most employers are unaware of these exemptions and limitations, so make sure you know your rights!

In Oregon for example, if you earn below a certain amount, you may be fully exempt from wage garnishment!  Click her to find out more!

Finally, if all of this seems a "little too much for you to handle", we can help. One of our Debt Solutions Specialists can help you decide what is the best next step for you.  Give us a call at 1-877-492-4109 or simply click on the link below for a free debt elimination consultation.

Have funds been taken from you bank account by one of your creditors?

If you get behind on your payments to your creditors, they can legally seize funds from your bank account!  Are you behind on any debts such as:

• Credit Cards
• Pay Day Loans
• Personal Loans
• Car Reposessions
• Medical Bills
  

If you are behind on your payments, don't worry quite yet.  A creditor can take a number of steps to collect, but they cannot contact your bank and take money out of your account without a WRIT OF GARNISHMENT OR LEVY.

A creditor can attempt to collect an unpaid, unsecured debt with:

• Phone calls (stop the collection calls --> CLICK HERE)
• Letters
• Summons to be awarded a DEFAULT JUDGMENT

Even if you get behind a month or so on a credit card bill, your creditor cannot go to your bank to request funds without first going through a series of legal attempts to collect.

Having said that, a creditor/collector is PROHIBITED from violating the Fair Debt Collection Practices Act (FDCPA). If you feel that you are being harassed by creditors, take some time to LEARN ABOUT YOUR RIGHTS.

If a credior has been awarded a judgment concerning the debt you owe, then they can go after your bank funds!

There are ways to stop a bank levy or to recover funds taken or frozen due to a writ of garnishment or levy having been presented to your bank. We can help.  Give us a call or click the link below for a free consultation!