There are all kinds of wage or payroll garnishments. Irs wage garnishments, child support wage garnishment, and payroll garnishment for student loans are all out there. Are you in danger of wage garnishment?
First, it is important to understand what wage garnishment means. Wage garnishment entails taking funds directly from your paycheck to pay off debt.
The most common reasons for payroll garnishment are defaulted student loans or unpaid taxes, child support, or court fees.
Wage garnishment occurs in all 50 states, and some companies even charge an additional processing fee for any wages taken out of your paycheck.
There are some regulations in place that can help. Thanks to Title III of the Consumer Credit Protection Act, businesses cannot terminate employees whose wages are being garnished for a single debt. The act also controls the percentage of earnings that can be garnished from each paycheck.
The goods news, though, is that there are ways to stop a wage garnishment or seek student loan garnishment help.
Sometimes you can nip the bud on garnishments by making other arrangements to pay off the debt. Other times, you may need to take legal recourse. Hiring an attorney or filing for bankruptcy, in some cases, may help. Certain provisions of payroll garnishment and wage garnishment laws no longer apply when you file bankruptcy.
If you are being faced with wage garnishment, seeking professional advice is a smart thing to do. The easiest way to avoid wage garnishment, though, is paying off debts before they get out of hand. Research more like this.