Ways & How

how to stop a garnishment without filing bankruptcy

how to stop a garnishment without filing bankruptcy

You do not have to file bankruptcy just to avoid a garnishment imposed by the court after a creditor has summoned you for delinquent payments on your loan. You may find out in the process that there are better ways of stopping a garnishment than becoming officially bankrupt. There are many valid options on how to stop a garnishment without filing bankruptcy. You just have to be resourceful. Start here by reading through these suggestions:

  1. When you start missing payments, immediately get in touch with your creditors. Make it a point to always be responsive in their every attempt to communicate with you. Negotiate for a payment plan that is workable with what you are receiving on a monthly basis during this difficult time. Show proof that you are really in trouble as far as your finances are concerned. If you are undergoing a foreclosure for your home, you can cite that as strong evidence of your problems. The creditor is more likely to be considerate to your suggestions than go through the lengthy garnishment process.

  2. Be knowledgeable regarding the Consumer Credit Protection Act of the United States’ Department of Labor.

    Find out what provisions are applicable in your state. These may vary from one state to the other. A garnishment can be discharged when the court has found improper technicalities committed by the creditor as far as legal procedures are concerned. You have to know the basics at least to point out any wrong technicalities.

  3. Formalize your objection to the wage garnishment order issued by the court by counter-filing that the garnishment should be denied while it’s still pending and citing reasons covered in the Employees’ Rights of the Consumer Credit Protection Act. Check provisions like the protected minimum income or the child support exception, and see if you can find something that is applicable to your situation.

  4. Be open to a payment plan with you giving an absolute guarantee to your creditor. It is advisable to let the creditor automatically deduct from your salary the minimum agreed upon amount to make sure that you won’t miss paying your dues anymore for both the loan and the installment garnishment charges. Paying the garnishment may not be prevented, but at least you are in control with all the deductions made and not the court. Since you know that you can afford the regular deductions, there’s less pressure on you.

  5. Put into writing the agreement you’ve made with your creditor. This must be filed with the court when the creditor has already filed a case against you. This is to prove that both you and your lender have agreed to the terms for the garnishment, and there will be no need for the court to impose a judgment against you. An out-of-court settlement is not only better for you but also for the creditor because legal proceedings can be very time consuming. Most creditors prefer to get their capital back at a lower cost than linger in court.

It pays to learn how to stop a garnishment without filing bankruptcy especially when there’s an economic crisis. Creditors may be very lenient to settle amicably because there’s a great possibility that their investment may not be returned. So, the next time you think that you need a loan, think again. Make sure that you know what to do when things get rough because you do not want to fail in your financial responsibilities. Always have a backup plan for the worst possible scenario that can happen and understand what you’re getting into.


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