If you're unable to pay off a credit card debt or loan, then the creditor may contact a local court to file an order for wage garnishment. Wage garnishment allows the creditor to take a percentage of your money out of every paycheck until the debt is paid, which can be devastating for people who can barely pay for basic necessities, and are overwhelmed with debt. However, before declaring bankruptcy, consider other options to stop a garnishment.
Negotiate with the creditor. Try to work out a payment plan or extension of payment as soon as possible. It's important to communicate with creditors instead of ignoring them, as ignoring creditors may only exacerbate the problem and cause additional fees on top of the debt.
Pay off the debt. After a judge issues a court order for wage garnishment, the debtor has 10 days to completely pay off the debt and nullify the order for garnishment.
Appeal to the court issuing the garnishment order for an exemption. Use the "Claim of Exemption" form from the local courthouse. This appeal works if the debtor cannot afford basic needs after losing the garnished amount from wages. Bring documents to prove financial hardship on the set court date for the appeal, such as bill statements, a payment log from the debtor's employer as well as bank statements recording receipt of wages and receipts from all purchases.
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