Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
Being in debt can be a frustrating and scary experience. Many debt collectors and credit card companies may try bullying tactics to get people to pay their debt, mostly by threatening to garnish their wages. However, there are certain laws in place that can help consumers get a better understanding of wage garnishment and how it can affect credit scores.
Legality of Wage Garnishment
Debt collectors can garnish a person’s wages, but only when they sue and win. In that situation, a judge would decide whether garnishment can satisfy the debt owed by the individual. It is illegal for debt collectors to threaten a consumer with a lawsuit, even if they don’t intend on following through. In some instances, debt collectors don’t plan on spending the time and money on filing a suit, and other times, they may not have the right to do so at all. Credit card companies are unlikely to sue for wage garnishment. However, they can hurt an individual who owes a debt in other ways, such as getting a debt collection agency involved and damaging the person’s credit in the process.
Never Ignore a Lawsuit
A person who is slapped with a lawsuit should never ignore the situation. This situation calls for an attorney. Ignoring legal action by a creditor can never help but can undoubtedly hurt you. If a person doesn’t show up to a court date, the debt collector can automatically get a judgment in their favor. It can result in a person having to pay what they owe in any number of ways the court decides it should be done, including through wage garnishment.
Anyone who receives a notice from their employer about their wages being garnished but who was never served with papers must immediately contact an attorney. This might mean the debt collector or creditor didn’t follow the correct procedures, which could get a judgment against you overturned.
The best way to avoid a lawsuit and wage garnishment, of course, is to pay off debts before they get serious.
How Wage Garnishment Affects Credit Reports
If a creditor sues someone and wins, the judgment is placed on their credit report, where it stays for seven years. As time passes, there is less of an impact on the individual’s credit score, but creditors can see it for many years. As a result, it could affect the person’s ability to open other credit accounts, buy or lease a car, or acquire a mortgage in the future.
Protecting Wages from Creditors
It isn’t often that creditors file lawsuits for wage garnishment. However, if a person is seriously delinquent in their debt and has steady employment, garnishment is possible. Some states prohibit garnishment, and in some cases, a garnishment amount is low, or their income is high enough that it won’t affect a person’s everyday life. Sometimes, creditors levy bank accounts instead of garnishing wages, which can dramatically affect a person’s lifestyle.
The best thing to do in such a situation is to reach out to an experienced credit card debt attorney who can negotiate debt settlement with creditors. Heather Benveniste with Benveniste Law Offices is that attorney. With seven years’ experience as a debt collection attorney, she understands how the other side works and can use that insight to your advantage. Contact us today for a free case evaluation.
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