When someone owes a significant amount of money to another party, various tactics may be used to collect the balance. It often begins with simply contacting the debtor to inform them of the issue—perhaps the debt was merely overlooked or forgotten, and they will pay after a reminder. There may be negotiations over payments or setting up a repayment plan. Notices may be sent out both electronically and through the mail.
If these methods fail, one tactic sometimes used is wage garnishment. This requires a court order, as creditors cannot garnish wages on their own. The court can enforce an order that the person’s employer is then obligated to follow.
Guaranteed payments
The benefit of wage garnishment is that it essentially guarantees at least partial payments toward the outstanding debt. This is because the employee never receives the money directly and therefore does not have to decide whether to pay the debt or spend the money elsewhere. The funds are simply withheld.
The employer withholds the approved percentage specified in the court order and transfers it to the creditor. This removes the decision from the worker’s hands, and wages can continue to be garnished for as long as necessary, provided the person remains employed.
While this is a useful process, it can be complicated. As noted, a court order is required. Additionally, employees may leave their jobs or take other actions to complicate the process. Creditors must be aware of their legal options and the steps they can take moving forward. It can help to work with an experienced law firm at this time.