If you're eligible, a debt consolidation loan may be a good option to stop wage garnishing. With your new loan, you can pay off your past due debts and start your personal finances from scratch. You may be able to stop the wage garnishment by consolidating your debt. Once a debt consolidation loan is approved, you'll be able to pay your creditors before receiving a wage garnishment order.
This strategy can give you more time to deal with your financial challenges and protect your credit rating. Debt consolidation or refinancing involves taking out a new loan to pay off your existing loans. It's going to be difficult to qualify for a new loan if you've been so late in paying your bills that your salary is garnished. If your financial situation is serious, paying off the debt may not be an option.
But if you have other ways to get the money, eliminating the debt will resolve the need to garnish. If the sales price doesn't cover what you owe, the creditor may try to garnish your wages until you have paid the remaining debt. Bankruptcy may seem like an extreme option, but sometimes it's the best thing to do if you're mired in debt. If you decide that a debt consolidation loan is right for you, Credible allows you to easily and quickly compare personal loan rates to find the best option for you.
Once this happens, the creditor could request that the court garnish your salary or bank account to repay the debt. If you've been late in paying your debt, debt consolidation can stop wage garnishing in certain situations. You might consider going the extra mile to earn additional income while you work to pay off your debts. By filing for bankruptcy, you may be able to immediately stop the wage garnishment and cancel the underlying debts.
Your employer will send the garnished amount to your creditor or lender so that they can use it to your debt. If a creditor is trying to collect a debt that you don't owe, such as one that you have already paid or that was liquidated in the event of bankruptcy, that could be a reason to stop the garnishment and settle the debt. For example, you can challenge the garnishment on the grounds that the debt doesn't belong to you or that the amount is wrong. If approved by a court, the creditor may request that a specific amount be deducted from your paychecks or bank account to pay the debt over time.
However, if other collection efforts have failed, or if your debt is nearing the statute of limitations (the end of the period in which the collection of the debt can be enforced), garnishing wages might be the creditor's best option. Debt consolidation involves converting several debts, such as credit card bills, medical bills and personal loans, into a new personal loan with a single payment.
Leave Message