With the current unemployment rate at 9.4 percent, many Americans are struggling to make ends meet. Even if they receive unemployment benefits, this amount is barely enough to keep the lights on. Consumers that fall behind in paying their bills may end up being sued by their creditors. The bank or credit card company can obtain a default judgment when people fail to show up for a court hearing. An Earnings Withholding Order will be sent to their employer and creditors can garnish up to 25 percent of the individual’s net income. There are a few ways to stop wage garnishment in California, which we will explore.
Your first option to stop wage garnishment is to contact the creditor and work out a solution to pay back the debt owed. Creditors might be willing to set up a payment plan when the amount owed is relatively small. Other possible options include:
Garnishments that resulted from a small claims case can be stopped by filing a financial statement with the court. The individual can request that repayment of the debt be done in installments due to financial reasons. The small claims court judge will make the final decision. If your wages have been garnished, contact a lawyer that specializes in debt settlement or bankruptcy law.