How to Stop Wage Garnishment
When a creditor obtains a judgment in a debt lawsuit, they can work with the New York Marshal's offices to garnish the borrower's wages. In stage one, the borrower would receive a Notice of Wage Garnishment from the Marshal informing the borrower to make voluntary payments in order to avoid the commencement of garnishment. Once the garnishment period begins, the Marshal will contact the borrowers employer on behalf of the judgment creditor to set aside a certain amount of money from each paycheck. Similar to the way that taxes are withheld from your paychecks, the money you owe will never pass through your bank account and you will not be responsible for passing the money along to your creditor.
Wage garnishment can be one of the most costly ways of paying back a debt, because the debt get's repaid slowly. As time passes, the interest and Marshal fees continue to accrue despite the payment made via garnishment.
Several Strategies For Stopping A Garnishment
- Offer to settle the judgment for a reduced amount in lump sum
- Offer to settle the judgment for a reduced amount to be paid in monthly installments
- File an Order to Show Cause to Vacate Judgment
- Offer to pay the judgment balance in monthly installments under a stipulation staying the garnishment
- Offer to pay in the judgment in full
- File for Bankruptcy
The Best Time To Stop A Garnishment Is Before It Starts
Before a garnishment is started, the borrower usually gets notice 20 - 30 days in advance. This window of time is critial. Once a garnishment actually starts, the Marshal will be looking to collect their 5% fee, and the creditor may be reluctant to extend a voluntary settlement. Unless the borrower is offering a lump sum, the creditor might feel that it's in their best interest to just let the garnishment pan out.
Whenever trying to negotiate a settlement on a judgment to avoid a wage garnishment, it can help to explain your hardship in way where the collection lawyers will understand why you fell into the debt, and why you will have difficulty repaying in full. Furthermore, if the collector has concerns about their ability to collect the debt through garnishment, they may be further inclined to discussing a settlement.
Lawyers To Help With Wage Garnishments
If your unsure of how to address a garnishment in New York, call us to learn about your options. Our attorneys are well versed with to the nuances of debt collection laws and can help fight to get you a reasonable resolution. Trust us for competent representation and reliable advice.
Schedule your complimentary initial case evaluation with our skilled judgment defense lawyers. Call the Law Office of Simon Goldenberg, PLLC today!
