In some cases, creditors find it difficult to collect, even after repeatedly contacting debtors. It’s not a situation where there has just been a miscommunication or where the person has forgotten to pay their financial obligations. They are aware that they need to repay the debt, and they are failing to do so on purpose.
In some of these cases, a tactic creditors will use is wage garnishment. What makes this so helpful when trying to recover a debt?
The debtor loses control of the money up front
The main difference is when the money is taken from the person who owes the debt.
For instance, even if there is a court ruling saying that someone needs to pay back their debt, they’re still required to send in those payments. Every time they get paid at work, they should be trying to pay back at least a portion of what they owe. But it’s up to them to take that step and send in each payment.
With wage garnishment, however, the wages are withheld by the employer at the beginning. The person’s paycheck is simply reduced by the required amount. The money that is withheld is then sent to the creditor. This way, it’s impossible for the debtor to avoid their obligation. As long as they’re still working, a percentage of their wages can be seized to slowly pay the debt off over time.
This is a useful tool, but it does require taking the correct legal steps to use it, so creditors need to know exactly what those legal requirements look like. It can help to work with an experienced attorney at this time.