There are few things as stressful for Tennessee consumers as facing a significant amount of debt they are unable to pay. If you find yourself in this position, you understand the complications that come with being in a difficult financial situation – phone calls from debt collectors, accumulating interest and even the garnishment of your wages.F
For those who might be unfamiliar with the phrase, wage garnishment is a legal tool creditors have at their disposal to force repayment of a debt. Under the laws of the State of Tennessee, creditors may seek payment for what you owe by having your employer remove a certain portion of your paycheck. This continues until you pay the debt in full. If it is already happening to you, or you are being threatened with the creditor action, you may be wondering how to make it stop. The good news? Yes, there are legal actions you can take to prevent it.
What happens next?
It may come as some comfort to you to note that a creditor cannot simply decide to contact your employer and start withholding part of your paycheck. The creditor must seek a court order to make this process happen. It may help you understand the following about the process of wage garnishment:
- Wage garnishment is more common than you may assume. People often experience this because they fall behind on payments for student loans, credit cards and taxes.
- There are limits to how much a creditor can garnish. The percentage often depends on the type of debt in question, state laws and other factors.
- You should receive notice of garnishment, and some things may be exempt, such as Social Security and veterans’ benefits. You also have the right to dispute the garnishment.
You may also have concerns about what wage garnishment could mean for your job. If it is just one garnishment, your employer cannot fire you simply because of this specific type of collection effort.
The feeling of reading the notice of wage garnishment can be devastating. You may be in a financial situation you cannot manage, and it may be hard to see a way out. Fortunately, the law provides you a few options by which you may be able to make the process of garnishment stop and deal with many types of debt once and for all.
Through consumer bankruptcy, you will be able to discharge some types of debt, allowing you to secure a better, more stable financial future. It may help you to learn more about the benefits of this choice and how bankruptcy can benefit you by seeking an evaluation of your case with an experienced legal professional.