When someone has a significant amount of debt that they have not repaid, one potential tactic that can be used to recover what is owed is wage garnishment. This is the process of taking the debt out of the person’s wages. It is done in small installments, typically with a specific amount or a percentage of earnings that is defined at the beginning of the process.
This cannot be done lightly. A court order is required. But it can be a very useful tactic if other efforts to collect that debt have not been successful. And one of the main advantages is exactly when the money is collected from the debtor.
Money is removed from their paycheck
Essentially, with wage garnishment, the employer takes the money out of the person’s paycheck before paying them. They then withhold this money, which can be used to pay back a portion of the debt. For instance, an employer could be told to take the same amount of money out of a person‘s wages every month for the next year, until the full value is returned.
This is beneficial because borrowers who have an income but who still are not paying back their debts may simply not make the decision to do so on their own. Even with a court order requiring them to pay, they may miss those payments or deadlines. They may spend their money on other purchases and not have enough remaining to pay the debt.
But if the money is removed by their employer, before they even get a paycheck, it essentially takes the debtor out of the equation and ensures that the money will be returned to the party to whom it is due. Again, though, this is a complicated legal process. Those who are interested in using wage garnishment must know how to proceed and what steps to take.