If you are behind in payments, the lender has the right to get a judgement against you, at this point you need garnishment help. Depending what the collection company is after it could be a property lien, a bank account freeze or a wage garnishment judgement. Hopefully you don't let it get to this point, but if it does there is help and things you can do to curtail the process.

There are steps and procedures a lender must go through before they can approach the court. A major lender usually ends up selling a delinquent loan to a collection agency after the account is 6 months behind. The collection agency usually pay pennies on the dollar and they go through their collection routine before they even consider garnishment of your wages.

Once they have exhausted the collection steps, then they can take the case to a judge who makes the decision if a judgement is valid. A wage garnishment order is sent to your employer and they will attach your paycheck according to the order.

How Much Can They Take?

There are federal laws and there are state laws. The judge takes each case individually and applies the guidelines accordingly. Generally, the maximum take from your wage is 25% or if the states rate is lower he will take the lower of the two. Most of the time these are unsecured debts or secured debts where the sale of the property is less than owed.

It is becoming more common for collection agencies to seek these wage garnishments due to the fact that the higher outstanding debts these days are worth it. Of course the best thing is not letting the situation get to this point, but if it does, you will probably need garnishment help in the form of a wage garnishment attorney.

Stopping a garnishment once the court has approved it can be done, but your options are limited. You can try to negotiate, but it might be to late for that because they have the garnishment and at this point they will want a lump sum, all interest and penalties due.

Bankruptcy

This is pretty much what it boils down to at this stage, bankruptcy will halt all collections with an Automatic Stay. Once you file the papers, legally all collections and garnishments stop. There is even a chance you can recover some or all of the money taken from your wages after your bankruptcy is approved.

This is a step people don't like to consider, but if you are slipping on overdue debt keep it in mind just in case. Also, be prepared to hire a bankruptcy lawyer or a wage garnishment attorney, depending on how complex your situation is.

Collection Practices

There are occasions when even after you file bankruptcy and you are in the hands of the court that collection agencies will break the law. They know the law or they should, I think it might be personal with some collectors at that point.

The reason we mention this is there have been cases where the agency is sued, this is one reason to keep Good records. The garnishment attorney will guide you through what to do if a collector is still on the hunt, good documentation could actually have you suing the collector.

This is a collectors last resort and bankruptcy will be your last resort to trump the garnishment process. The main thing at this point is at least you know you still have an option, but remember you can only file a chapter 7 bankruptcy every 8 years. If you used this wild card (chapter 7) before, and your not eligible yet, do everything possible to negotiate your debt so it won't end up as a garnishment.