Can Credit Cards Garnish Your Wages?

Overview

Credit card companies and other creditors like to use wage garnishment as a threat for clients who have defaulted on their account. While this can be an effective threat, when it comes down to it, can a credit card actually garnish your wages?

The Short Answer

Can a credit card garnish your wages? The simple answer is Yes, and No. Yes, a credit card company or other creditor can garnish your wages, but only after taking you to court and having that judgment awarded to them. In other words, they cannot just say that they are going to garnish your wages and proceed to do so independently. Without a court order of garnishment, no employer can allow a garnishment of an employee's wages.

Avoid Garnishment

While this is a valid threat and a very real possibility, you have ample opportunity to remedy the situation before it comes to garnishment. This is why the creditors advise you that you may face garnishment; they want the account paid off and taken care of without going to court just as much as you do. Most creditors are willing to work with you as long as you make an effort to pay something each month. Before you get subpoenaed to court, contact your creditors and make payment arrangements, because if it becomes a court issue you will be responsible for not only your debt, but also court and attorney fees.

Help to Avoid Garnishment

In the event that you receive a notice from your credit card company threatening further collection actions and/or garnishment and are unable to make a payment, contact someone who can help. There are several debt relief and consolidation companies who will act as the middleman between you and the creditor or creditors who are pursuing you. These companies usually require that you have a minimum of $5000 in credit card debt, and will negotiate, consolidate and communicate with the creditors to get your monthly payment to an amount you can manage. Once you have made arrangements to take care of the balances, make sure that you make the monthly payment, and do not incur any more debt in the meantime. One important thing to remember is that even getting out of debt can cost some money. You may have to pay a consolidation fee, or a consulting fee to the debt relief company. Many times they will be able to work this amount into your monthly payment, in order to help you get started on organizing your debts and payment scheduling.

Court

If it is too late for you to make arrangements or hire a debt consolidation company, and you are facing a court date, there are still some things that you can do to possibly avoind garnishment. Hire a lawyer, who understands the ins and outs of financial collection cases. Be prepared to either make payment that day of the balance in full, or have a reasonable payment plan figured out. If you are unable to make payment or arrangements at that time, the court will more than likely rule that your wages be garnished to pay the debt owed. Be cooperative and give the court all information necessary to proceed with the garnishment order. Do not think that you can change jobs or quit your job to get out from under the garnishment order, or you will just end up back in court.

Final Answer

The cold, hard truth is that after pursuing the matter, possibly hiring collection agents, and suing you to procure an order, that yes, your credit card company can garnish your wages. Whether it gets to that point is really up to you and how you handle your responsibilites and communicate with the creditors.

Can Credit Cards Garnish Your Wages? by debtcenter.info