The best solutions for substantial personal debt are voluntary ones. Most creditors try to work with people who have fallen behind on their financial obligations. However, some are less patient than others. Credit card companies and medical creditors are among those likely to take legal action sooner rather than later if someone falls behind on payment arrangements. Creditors often seek to force someone into financial compliance by taking legal action against them.
Many businesses suing individuals in Georgia specifically request that the courts intercept a portion of the debtor’s weekly paycheck. A successful garnishment lawsuit could worsen someone’s financial circumstances.
What does garnishment involve?
Creditors who have proof of unmet financial obligations can go to court. A judge might rule against the person who has fallen behind financially. Issuing a wage garnishment is a way to force someone to make payments. The state allows the creditor to intercept a portion of an individual’s paycheck instead of relying on them to make payments voluntarily.
The more someone makes, the more the courts can award their creditors in a garnishment scenario. The creditor can ask for 25% of someone’s disposable income or any amount earned after receiving 30 times the current hourly minimum wage for the week. Typically, creditors receive the lesser of those two amounts.
How garnishment hurts someone
Obviously, losing a portion of one’s paycheck every week can worsen already challenging financial circumstances. Someone subject to wage garnishment may end up falling further into arrears on other necessary financial obligations. The person subject to garnishment may soon find themselves struggling with other financial obligations.
Judges are unlikely to lend much value to claims of personal financial hardship. Regardless of why someone claims they cannot make payments on time to creditors, judges are quite likely to rule in favor of the creditor or business. Therefore, preventing the completion of the lawsuit is often the best option available for someone facing creditor litigation.
A personal bankruptcy filing can give someone an automatic stay. The courts temporarily prevent collection activity. If the debt is eligible, it may be possible to discharge what someone owes to avoid wage garnishment. Even if that debt in particular is not eligible for discharge, other debts might be. The elimination of certain financial obligations can help someone better meet their other monthly responsibilities.
Getting served with creditor lawsuit papers is a valid reason to look into a personal bankruptcy filing. Responding quickly to a pending creditor lawsuit could help someone avoid worst-case scenarios.