A growing trend of wage garnishment from lenders has many debtors worried. While wage garnishment has typically been reserved for child support cases, more people who owe on debt may face this consequence. Wage garnishment is when a creditor has legal right to take a certain amount of a person’s salary to pay off a
A growing trend of wage garnishment from lenders has many debtors worried. While wage garnishment has typically been reserved for child support cases, more people who owe on debt may face this consequence. Wage garnishment is when a creditor has legal right to take a certain amount of a person’s salary to pay off a debt. According to the U.S. Consumer Credit Protection Act, employers can take up to 25% of an employee’s earnings for debt repayment.
Wage Wars
About 7.2% of working individuals have had their wages garnished. About 40% of these cases were related to child support, while about 20% were for tax debts. Wage garnishment can be a stressful and demeaning experience for many employees because it can start to feel as though the work being put in is not building a future, but rather simply going to the institutions they are indebted to.
High interest rates cause many hard working individuals to fall into debt with credit lenders, which results in high monthly wage garnishment payments. If your debt has become unmanageable, it may be time to consider contacting a bankruptcy lawyer to evaluate the benefits of bankruptcy for your financial situation.
Don’t let your overwhelming debt cause you to lose your wages unnecessarily. Contact a bankruptcy lawyer to determine if your finances might benefit from filing for bankruptcy and minimizing or eliminating your debt. The process of filing for bankruptcy might seem stressful, but with skilled legal representation, you can advocate for your fresh start. Don’t let wage garnishment take over your finances. Seek legal representation with a New Albany bankruptcy lawyer to get the financial support you deserve.
