Financial problems have become a part of many people’s lives during the present, and there are few signs that help is on the way. Due to this fact, many people find themselves in the routine of getting harassing collection calls and angry letters from creditors. In fact, there are so many people that have debts which were sent to collection agencies that some organizations say these collection agencies are actually behind schedule. Due to this fact, some agencies are allowing less time for collections before they hire an attorney to seek legal liens on the wages of debtors. Some people may be threatened with having their wages garnished as a way for collection agencies and other organizations to get their payments.
Is Wage Garnishment Inevitable?
Many people have been asking the question: If I have debt, will my check be taken over by collection agencies? The answer to this question is normally no. Most people will never have their wages garnished due to debt collections. However, some people choose to have wage garnishment when they file for bankruptcy. One of the many ways that debtors have been using to beat the calls of collection agencies is by simply filing for chapter 7 or chapter 13.
What Will Bankruptcy Do?
Bankruptcy is a decision that should not be entered into lightly. This form of financial filing is reserved for those who have debts outstanding, which they have no way of paying. When one files for bankruptcy, he or she must make choices about their credit purchases. For instance, in chapter 7, a person must choose the items they want to include in the bankruptcy, which will eventually be paid off. In chapter 13, a person will pay all of their credit purchases off. Both of these types of bankruptcies will usually involve one's paycheck being garnished to pay off those debts. However, when a person files for one of these types of bankruptcies, he or she can avoid paying the large interest rates that they are sometimes charged for their credit purchases. This simple fact has been fought by credit companies for the last two decades although the predatory lending procedures engaged in by lending agencies give little aid to their defense.
Credit Cards and the Present
Although some credit card companies tend to go after debtors in an aggressive manner, most companies simply turn over debts to collection agencies in hopes that these other agencies will be able to collect. If the collection agency is able to collect, the credit card company will be given a percentage of the collection. Also, collection companies have been known for their aggressive collection techniques, which have gotten these companies little sympathy from governmental organizations as far as helping them collect debts. These companies rarely have the capital to take simple credit debts to court, which means that unless you have significant debt, simple collections will not enable an organization to garnish your wages.
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