Wage Garnishments are both embarrassing and financially painful. Their are many options available to a distressed creditor to prevent this from occurring.
The following paragraph is reprinted from a Fox News article How Wage Garnishment works.
As a result of consumer advocates taking issue with the practice of freezing all bank funds and placing the onus on the consumer to prove which funds are exempt, a new rule was passed, effective May 1, 2011, to protect exempted funds from garnishment orders. Electronically deposited exempted funds, such as Social Security, will now be "tagged" by the federal government, making it easier for financial institutions to separate exempt and nonexempt funds to be garnished. The bank must also provide debtors with the amounts of these protected and unprotected funds once it is served with a garnishment order. Nonexempt funds that are not direct deposited, however, do not qualify, as they will not be electronically tagged.
This is extremely important information to know because if your money is not electronically deposited, a creditor may still place a hold on the exempt funds and leave you to prove that the funds in fact did come from an exempt source.
Their is no reason to put yourself at risk of a wage garnishment. The worst thing that a debtor can do is to put your head in the sand and ignore debt problems. They will not simply go away.
So, if you feel overwhelmed by debt then you need to get a hold of yourself and contact a Free Credit Counseling company where you can speak with a certified credit counselor and learn all the options you have.
These may include some form of debt consolidation program, perhaps debt settlements, or a debt restructure program.
Whatever you do, do not do nothing.
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Written By
Steven Ciantro
Certified Credit Counselor
American Debt Enders
help@americandebtenders.com
877-766-2465
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