If you are receiving Social Security Benefits, most are protected from creditors, but not all!

It is a common misunderstanding that a debt collector has the right to garnish your income or bank account for an unpaid bill.

While this is kind of true, it is very important that you realize that a debt collector CANNOT apply for garnishment or a bank levy without first being awarded a judgment by the courts.

Having said that, you must also realize that the IRS and State Agencies CAN garnish or levy for certain debts, such as:

• Child Support
• Spousal Support (alimony)
• Federally guaranteed student loans
• Federal and State Taxes
• Other debts owed to State or Federal Agencies

Rather than get into those debts, let's talk about what can or cannot happen to your Social Security Benefits if a debt collector (again, not from the list above) receives a judgment.

Let's say that you have an unsecured credit card debt, and you just cannot afford to make the minimum payments.  The account becomes 30,60 or 90 days past due and you are receiving phone calls and nasty letters. 

It is at this point that your credit card account may be sent to a collection agency.  Now things really get serious.  More calls and letters, but now you can put a stop to those calls:

It is one thing to put a stop to the calls, but the letters will continue.  Too many people are so frustrated about being in such a terrible financial situation that they do their best to ignore these letters.

If that's what you have done, then it is possible that the debt collector will file a complaint.

A "complaint" is a legal process whereby the person who is owed the debt contacts an attorney (licensed in your state) and the attorney files the proper paper work (complaint) with the court in your county.

Next, you will receive a SUMMONS, and this is a little scary!

The worst thing you can do is to ignore the summons.  DO NOT IGNORE A SUMMONS!

Most of the time, some sort of settlement or agreement can be worked out even after a summons is issued, but if you do nothing, a court date will be scheduled and the debt collector will be awarded a judgment.  This is called a Default Judgment, as the debt collector (plantiff) was awarded the judgment because no one from your side (defendant) was there to argue.

By the way, unless you can prove that you do not owe the debt, there is really no reason to give the legal "ANSWER" that the summons mentioned.  Most courts charge a hefty fee to file an "ANSWER", and it must be "legally" correct, meaning you might have to pay an attorney for their services!

So now you know that except for the debts to the Federal or State governments and the other obligations mentioned above, there is a legal process that must happen before a garnishment or levy can happen.

But, let's say your creditor (debt collector) is awarded the judgment and sends a writ of garnishment/levy to your bank.  NOW WHAT?

Good news!  As of May 1, 2011, when a bank receives a garnishment writ or order, it must review your records or statements to determine if a Social Security check has been direct-deposited into your account in the past 2 months.  This is called the Look-Back Period.

The bank will determine the total amount of "exempt funds"...funds from Social Security Benefits.  SSI (Supplemental Security Income), Veterans benefits, and federal employee retirement checks will receive the same type of protection.

Other retirement income is also exempt from garnishment or levy, but is not given the same automatic "Look-Back Period" afforded direct deposits from Social Security Benefits!

Many banks or credit unions will help protect it's bank customers retirement funds from garnishment or levy, but you just assume they will!

If you are falling behind on your debts and have received a summons, then you should contact your bank immediately and find out what their procedure is if they are presented a writ of garnishment or levy.  Most banks will "FLAG" your account to notify anyone at the bank that those funds are exempt, BUT DO NOT TAKE IT FOR GRANTED! 

Another important point!!!!

Let's say that your Social Security Benefit is directly deposited in your checking account.  You want to move some funds to a savings account to make sure you have a little money set aside for a rainy day.  Seems like a good idea....WRONG!!!

If you transfer funds from the account that had received the Social Security Benefit, they are now NOT PROTECTED from garnishment or levy!

ONE MORE THING TO KEEP IN MIND...

Let's say that you have a part-time or side business to help out.  You get a little money from this extra job and you deposit it in the same checking account that receives your Social Security Benefit.  Prior to May of 2011, these funds were considered "co-mingled fund" and now all of the funds were subject to garnishment or levy!

Now, the bank will exercise the 2 month "Look-Back Period" and will determine how much is from Social Security and how much was from another, unprotected source.  Those funds would be subject to garnishment or levy.

HERE IS WHAT I SUGGEST:

Once you have received a summons, you know that the debt collector is very serious and will do every legal thing they can to collect that debt.

• 1)  Contact your bank to determine what level of protection you have from a possible garnishment or levy.  If they don't give you a good feeling of security, consider moving your account!
• 2)  If you receive "other sources of income", you should consider not having them direct-deposited or deposited at all!  I know, but until this summons/debt is dealt with, I would not risk it!  I've seen a client of ours who was too stubborn to take our advice have a coupld of thousand of dollars "frozen" by his bank and he couldn't make rent or buy groceries!

BOTTOM LINE...

Yes, Social Security Benefits are protected from garnishment or levy, but you CANNOT take it for granted!

If you receive a summons, then you must be pro-active.  The worst thing you could do is to do nothing.

Photo by Heidi Elliot

http://www.flickr.com/photos/7342234@N02/3846575731/

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.

                                 FREE, NO OBLIGATION CONSULTATION

A wage garnishment can be devastating!

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

1.  DON'T IGNORE A SUMMONS!

There are several steps that a creditor must take before they can apply for a writ of garnishment.

First, a creditor must hire an attorney that is licensed within your state to file COMPLAINT with your local, county court.

A COMPLAINT is an official/legal statement that you owe a certain amount to someone.

For example, let's say you have a Visa card and due to a severe financial circumstance...

• Loss of employment
• Illness
• Divorce
• Death of a spouse
• Disability

... you find yourself unable to make any payments.

After a few months of calls and letters (HOW TO STOP COLLECTION CALLS), a creditor may choose to file a complaint.

Once the complaint is filed, a SUMMONS is prepared and delivered to you.

The SUMMONS will state that the creditor (called the Plaintiff) will state exactly what you (the Defendant) owe.

It will also state that you have a certain number of days to give an ANSWER.

An answer, is a legal document that you file with the court (yes, there is a significant fee to file an answer) whereby you state why you do not owe the debt.

But, in 99.9% of the time, most people know they owe the debt.

Unfortunately, this summons and legal procedure could have been avoided if you had contacted the collector or a Debt Management Company .

2.  YOU SHOULD TRY TO NEGOTIATE A SETTLMENT OR STIPULATED AGREEMENT BEFORE THEY MOVE FOR A DEFAULT JUDGMENT.

Once a complaint has been filed and a summons delivered, the creditor or collector has had to pay extra money to the court/attorney/summons delivery company, etc.

They may not be in a postilion to offer much of a settlement, but you should always try.

If a settlement cannot be reached, most of the time a STIPULATED AGREEMENT can be arranged.

A stipulated agreement is an agreement that you make to pay back (usually 100%) of the debt plus fees and interest over a certain length of time.

The reason you would do this is to avoid the court awarding the collector (Plaintiff) a DEFAULT JUDGMENT, which will be awarded to the plaintiff by default, since you are not going to contest that you owe the debt.

It is only AFTER the judgment is awarded that the creditor can apply for a writ of garnishment.

My point is that you shouldn't PANIC just because you receive a SUMMONS and/or a JUDGMENT.

We have been able to help hundreds of clients avoid wage garnishment, but the key is to TAKE ACTION!

I know we are talking about WAGE GARNISHMENT, but once a judgment is awarded, a collector can come after your BANK ACCOUNT....UNLESS...

3.  MANY SOURCES OF INCOME ARE EXEMPT FROM WAGE GARNISHMENT:

Here are a few of the types of "income" that are exempt from garnishment in Oregon:

• Social Security
• Supplemental Security Income (SSI)
• Disability benefits
• Welfare or any public assistance
• Spousal or child support
• Pensions (public or private)
• Veterans benefits
• Disability proceeds from a life insurance or disability policy
• Cash surrender value of life insurance
• Many others (click to see complete list)

As of May 1, 2011, anyone applying for Social Security Benefits were required to have their checks direct-deposited to their bank.

As of March 1, 2013, anyone who had been receiving their Social Security Benefit checks by mail had to switch to a Direct Deposit with their bank.

But, there was another very important law passed on May 1, 2011. 

If a bank receives a garnishment order (only after a judgment was awarded the creditor), the bank cannot freeze or release money that came from social security benefits if the government deposited the benefits directly into your account within two months prior to garnishment order.

After receiving the garnishment order, the bank must know perform a two month "look back" check to determine the source of funds in your account. 

The bank must report to you within a few days of their "investigation" and let you know what they plan to do.

WORD OF CAUTION....

• Social Security (or other retirement benefits) are not protected from payment of:
• Child support
• Alimony
• Federal and/or State Taxes
• Federally insured Student Loans

One final warning about protecting your Social Security and/or other Retirement Income from garnishment..

• 1.  Do not co-mingle your Social Security Benefits with other funds.  This could remove the exemption!
• 2.  If you transfer money from the account that received the Social Security Benefit to another account (a savings account for example), that account will not be protected!

If you have questions or could use some advice, please let us know! We've been helping people with severe debt issues for a long time, and we can help you to. 

If you have received wage garnishment due to a judgment issued on your unpaid credit cards or other personal loans, it may be possible to stop it.

But, you need to know your rights.

Certain types of income are exempt from wage garnishment:

• Social Securtiy
• SSS or Supplemental Security Income
• Veteran's benefits
• Civil Service and Federal Retirment and Disability Benefits
• Military Annuities and Survivor's benefits
• Merchant Seamen Wages
• Longshoremen's and Harbor Worker's Death and Disablity benefits
• Compensation for Injury, Death, or Detention of Employees of U.S. Contactors outside the U.S.
• FEMA (Federal Emergency Management Agency) benefits

Also exempt from wage garnishment:

• Retirement income (pension and personal retirement plans)
• Public Employee Retirement System (PERS) benefits
• Income you may be receiving from a Reverse Mortgage
• W-2 Income that is less than $936 net after tax per month( your state's exempt amount )

But, you also need to be aware that these incomes MAY NOT BE PROTECTED from:

• Delinquent Federal and/or State taxes
• Federal Student Loans
• Child Support
• Alimony

If you receive a notice of garnishment, you should immediately contact the attorney representing the plantiff (creditor).

Your employer cannot do anything for you.  In fact, your employer must fulfill the writ of garnishment or could be subject to a hefty fine!

In most cases, the attorney for the plaintiff will agree to a reasonable repayment plan instead of enforcing the garnishment.

But I said REASONABLE!

If the garnisment is going to be 25% of your net income (most states), and that comes to $500 per month, they are not going to agree to a $100 a month!

But, they may be open to say, $250-$350 for a STIPULATED AGREEMENT (SA).

You may also be able to settle the amount you owe for less than the full balance.  If you have any funds available, make an offer of approximately 50% fo the balance.

Since the judgment has been entered, and the writ of garnishment has been presented to your employer, the creditor will not be as willing to discount the balance as in a normal DEBT SETTLEMENT AGREEMENT.

If this sounds like too much for you to deal with us, please contact us.

How much of your income is exempt from garnishment?

For the sake of this blog, let's walk through a hypothetical example of how a wage garnishment is calculated by your employer.

Let's say you had financial problems (layoff, divorce, illness, etc.) and could not make the required minimum payments.

• The account becomes delinquent
• After numerous calls from the creditor (HOW TO STOP CREDITOR CALLS)
• Account is charged off and sent to a DEBT COLLECTOR
• Process repeats (Need to STOP THESE CALLS ALSO)

If an agreement cannot be reached between you and your creditor/collector, the creditor may instruct the collector to retain an attorney (many collectors are attorneys) to file a CLAIM or LAWSUIT for the debt you owe.

You would then receive a SUMMONS.

Again, if an agreement (usually called a STIPULATED AGREEMENT), cannot be reached, then a court date is set and the PLAINTIFF or CREDITOR would be awarded a JUDGMENT.

Now the plaintiff can apply for a WRIT OF WAGE GARNISHMENT.

Your employer is legally bound to honor the WRIT and uses a WAGE EXEMPTION or CALCULATION GUIDE to determine how much of your wages must be sent to the court.

In Oregon, ORS 18.385 says basically that the MAXIMUM subject to GARNISHMENT is 25% of an employee's DISPOSABLE INCOME (AFTER-TAX, TAKE-HOME).

Unless the employee is left is less than $218 per week!

So, if your net, disposable income is $218 x 4.2 weeks or $915.60 per month, you would not be subject to garnishment.

But, let's say you are earning $15/hour and working 40 hours x 4.2 weeks per month or $2,520 GROSS (BEFORE DEDUCTIONS).

Again, let's say your net deductions are 27% of your gross income, leaving you with a net take-home income of $1,839.60.

In Oregon, 25% of the net take-home (most states are 25%, but be sure to check your state's code) must be garnished.

$1,839.60 x 25% = $459.90 per month!

For most people, that would be financially devastating!

Before you let your delinquent accounts go this far, give us a call or contact us right away!

We may be able to arrange a repayment or settlement plan to avoid wage garnishment.

We all know that "Money Doesn't Grow on Trees", right?  When we work hard all week long, we want to be able to see the fruits of our labor.  When creditors garnish your wages, it can be devastating.

Is there anything you can do to stop a wage garnishment?

Yes you can.  Here are 3 things you should know to stop wage garnishment:

1.  Your wages can't be garnished if you take home less than your state's minimum.

Usually, when your employer receives a NOTICE OF WAGE GARNISHMENT, it usually has your state's formula for determining how much or if, your income is subject to garnishment.

If you are employed for example in Oregon, and our NET AFTER TAX or TAKE HOME IS $218 or less, then your wages are exempt from garnishment!

2.  If your income is subject to garnishment, you may be able to work out a repayment plan with your creditor that is less than what the garnishment would be.

If your income is greater than $218/week, then 25% of your NET INCOME would be withheld by your employer and sent to the creditor per the Writ of Garnishment.

You should contact the attorney for the creditor (it is on the summons or writ of garnishment you received) and see if you could negotiate an amount for less. Some creditors may be willing to work with you.

We have had great success in the past helping people with wage garnishments, and working out a STIPULATTED AGREEMENTS in lieu of garnishment.

3.  Your income may be EXEMPT FROM GARNISHEMENT if it comes from one of the following sources:

• Social Security
• Retirement Income
• Unemployment
• Disability Benefits
• Worker's compensation
• Spousal Support or child support
• Elderly rental assistance (ORS 310.6355)

If you are not sure if your income is exempt, we may be able to help.  Give us a call today at   1-877-492-4109 or simply click on the link below for more information!

If you answer the door and are handed a summons, there are some things you must do:

#1 DON'T PANIC!

If you don't read the summons carefully, it seems like it says that you have 20-30 days before you have to go to court. But this is absolutely NOT TRUE!

The summons is stating that you have a brief time period to file an ANSWER.  This is a formal denial of that you owe the debt.  In most cases, the DEFENDANT (that's you) doesn't need to file an "answer" as you do owe the debt.  But if you feel that you have repaid the debt or that the debt does not belong to you, by all means file an "answer".

It may cost you a hundred bucks or so, but that is just the cost of the court.  You will want to contact your court to find out what you should do. In very rare cases, you may need to hire an attorney to help.

After the collectors called and called and called, (Click HERE to learn HOW TO STOP THE CALLS), they may decide to FILE A CLAIM against you...hence the summons. Which brings us to...

#2 DON'T IGNORE THE SUMMONS!

We had a client that received a summons several months ago and did not tell us about it.  She called the other day to say that her wages were going to be garnished and "what can you do about it?"

In most cases, there is not much that can be done once a Writ of Garnishment is issued.  A WRIT OF GARNISHMENT is issued after the creditor or PLAINTIFF, wins a DEFAULT JUDGMENT.

Since we had no idea about the summons and subsequent legal procedure that led to the award of the judgment, we were in a bind!

Once the Writ of Garnishment is issued in most states, 25% of your net (after tax) income will be withheld by your employer!  For most people, this would be FINANCIALLY DEVESTATING!

For Example:

Let's say you make $18 an hour.  That's about $3,000 a month gross earnings.  If your employer withholds normal income taxes, that would mean your take home would be about $2250. 

A garnishment of 25% would be about $562.50!  If it's hard to make ends meet now, how could you do it with $562 less?

If she had contacted us about the summons as soon as she received it, we most likely would have negotiated either a settlement (maybe 50% or so of the balance) or a Stipulated Agreement, whereby she would repay the debt (often at a slightly reduced balance) with a monthly payment her budget could handle.

In some case the creditor will accept a stipulated agreement AFTER a judgment is awarded, but not always.  Unfortunately, although her creditor was willing to take a little less that the $562.50, she could not afford it and she was forced to seek a bankruptcy attorney's services!

#3 REMEMBER THESE IMPORTANT STEPS!

• DON'T IGNORE A SUMMONS
• CONTACT THE ATTORNEY FOR THE CREDITOR/PLAINTIFF IMMEDIATELY
  
• OFFER A REDUCED SETTLEMENT AMOUNT OR
• OFFER TO REPAY AT AN AMOUNT YOUR BUDGET WILL ALLOW
  

If you have receive a summons and are still not sure what to do, WE CAN HELP. Give us a call AT 1-877-492-4109 OR click the link below!

Good news! YES, There is a way to stop a wage garnishment WITHOUT bankruptcy!

If you are facing financial difficulty and get behind on your credit card payments, the creditor may choose to seek legal measures to recover the debt.

BUT, IT IS VERY IMPORTANT THAT YOU KNOW:

• A creditor cannot just decide to garnish your wages
• A creditor cannot just decide to levy your bank account
• A creditor cannot take you possession!

A creditor will usually follow the following steps to recover delinquent debts:

• Calls, calls, calls!  Click here to learn how to STOP THE CALLS
• Nasty letters with threats of ruining your credit, possible legal action, etc.
• And then, after about 4-6 months, if they are unsuccessful, they may decide to file a complaint for the debt you owe.

After they file a complaint in your local county courthouse, you will receive a SUMMONS.

DON'T PANIC!!!

The summons will state that you have 20 or 30 days to respond with an "ANSWER". 

An "answer" is what you would present if you feel that you do not owe the debt.

Since you owe the debt (even though the interest rates and fees are ridiculous), the fact is that when you signed up for the card, you agreed to all of the fees. (Remember all that fine print you skipped over?)

Anyway, so after about a month or so after receiving the SUMMONS, if an agreement cannot be reached with the creditor, they may apply for a DEFAULT JUDGMENT.

Once the Default Judgment is awarded to the creditor (plaintiff), then they can apply for a WRIT OF GARNISHMENT.

Each state varies as to how much can be garnished and what income is exempt from garnishment.

In most states, the garnishment is 25% of your net (after taxes) take home pay.  For most people who are already in a financial hardship, this would be terrible!

If you receive income from:

• 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

Click here to get a list of exempt wages in Oregon.

OK, so if you don't meet the exemption requirement and you get a garnishment, here's what you have to do:

Contact the creditor or the creditor's attorney.

In most cases, once you have provided proof (BASIC BUDGET WORKSHEET), you should be able to arrange a STIPULATED AGREEMENT.

In a STIPULATED AGREEMENT, the attorney agrees to STOP THE GARNISHMENT and NOT PROCEED with further legal action as long as you send in the agreed amount each month.

This amount should be less that what the garnishment would have been.

IT IS VERY IMPORTANT THAT YOU NEVER MISS AN AGREED PAYMENT!

If you do, they will most likely VOID THE AGREEMENT and start the wage garnishment again and will not be willing to re-negotiate another Stipulated Agreement.

SOUND CONFUSING?  We may be able to help.  Simply CLICK THE LINK BELOW or give us a call at 1-877-492-4109.

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.