How to Reduce Wage Garnishment
Wage garnishment is the process by which creditors collect on monies owed by deducting payments directly from the debtor's employer. Garnishments may only be applied to wages earned after your employer has made deductions for social security, Medicare, federal and state taxes. Wage garnishments may only be modifying by the court, so if you successfully negotiate a reduction with your creditors, it will need to be approved by the judge.
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Instructions
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Make your case for reduced garnishment from the outset. Before a creditor may garnish your wages, they must obtain a court order. If you appear at the hearing and explain your financial situation to the judge, along with a plan to repay your debts, he or she may reduce the amount of your garnishment.
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Make regular payments. If you are able to make regular monthly payments towards your outstanding debts, your creditors may be willing to reduce the amount of your wage garnishments or stop docking your pay altogether.
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Declare bankruptcy. When you file a bankruptcy petition with the court, the judge will enter an automatic stay that will stop creditors from garnishing your wages.
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Pay your debts in full by getting a debt consolidation loan or liquidating your property. If you are able to fulfill your entire obligation to the bank or creditor, including interest and penalties, they will no longer be allowed to garnish your wages.
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Tips & Warnings
Each state establishes its own laws on wage garnishment. Consult a bankruptcy attorney in your state if you receive notice that a creditor is pursuing wage garnishment.
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