With millions of Americans facing job losses and mounting debt, many are choosing to ignore calls and letters from debt collectors. Let’s face it, when you’re struggling to pay the basics…food and shelter who has any money or energy left for debts that you can’t pay off any time soon. But be forewarned, if collectors see that your debt is languishing and you haven’t made any payments they may attempt to garnish your wages or bank account.

What Happens In A Garnishment?

Once the debt collector secures a court judgment against you he can use it to seize your wages or bank account.

In the case of wage garnishment, most states won’t allow the seizure of more than 25% of your wages. Also, certain types of income, such as SSI cannot be garnished. Speak to an attorney regarding what income is exempt from garnishment.

In the case of a bank account garnishment, all funds can be seized with few exceptions as noted above. It is up to the debtor to prove what funds in the account are exempt from seizure.

How To Avoid Garnishment

Respond to debt collectors and negotiate a repayment plan or settlement before they sue you. If you have already been sued or have a garnishment speak to an attorney immediately.

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