3) Can My Wages be Seized by a Creditor?

Yes they can. A typical amount of a Garnishing Order is 30% of your gross income. If you believe some debt collectors, you might well be convinced your very next paycheque is going to be seized unless you make a payment right then and there. Again, as in Legal Questions 1), it is the threat that is mDebt Consolidation, Bankruptcy, Settlements The Debt Solutionost often effective in collecting money. The threat of losing a portion of wages is frightening to someone already struggling financially. But this is an intimidation tactic used to scare people into committing to a payment schedule.

Garnishing Orders aren’t just suddenly pulled up from nowhere. They are a consequence of a fairly lengthy legal process. First, a creditor must prepare a lawsuit, have the debtor served, appear in Court and then obtain a Judgment. That Judgment may be restricted, depending on how the Judge views the defence. But assuming there are no restrictions the creditor can execute his Judgment against any asset – wages (a Wage Garnishee), bank account, property and so on – that the debtor owns. The creditor has to apply through the Court each time he wishes to issue a Garnishing Order. It’s a lengthy and expensive process often taking several months until the creditor is in a position to begin issuing his first Garnishing Order. Fortunately, most creditors view negotiation as the preferred route these days: if the probability of settlement exists, the likelihood of being sued is virtually non-existent.

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