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Credit-Card Lawsuits and Wage Garnishment

Updated on September 24, 2014

If you are reading this, chances are you or someone you know might be in a financial bind that has you or someone else a bit concerned. Before you break out in hives or continually lose sleep at night, be assured that if you get sued by a credit card company, it’s not the end of the world; and you can’t go to jail for not paying your credit-card debt. You are, most certainly, not alone since millions and millions of Americans share your situation; so if misery loves company, know that you are in the company of about lots of people each and every year!

Many people are under the false impression that since credit card debt is unsecured debt, not a whole lot can happen if one ends up not paying their monthly credit card bill—aside, from the fact that one’s credit will severely deteriorate. The fact is, even unsecured debt can wreak havoc with your life whether you owe $600 or $6,000.

What You Can Expect:

First and foremost, the credit card company will attempt to sue you for not paying the money owed, but it must first have legally established a judgment against you. That judgment would have a specific dollar amount attached to it. A question that would go through anyone’s mind would be, “What can the creditor do to make my life uncomfortable at this point?”

Consequences such as bank garnishments, freezing bank accounts, wage garnishments, liens on property and seizing personal property can all present themselves in varying degrees depending on the circumstances. Here, we will focus on only wage garnishment.

Wage Garnishment:

With wage-garnishment, your employer is legally obligated to set aside some of your monthly pay for your creditor. Not all states, however, honor wage-garnishment; and if you live in North or South Carolina, Pennsylvania or Texas you can breathe a lot easier since these states are debt-friendly where wage-garnishment does not apply. And the relief one might feel if one lives in a debt-friendly state would be justified since creditors can take up to 25% of one’s disposable income until the debt is satisfied. If you have several debtors that have secured judgments against you, they can wait in line to obtain their share of money owned them. When one debtor has been satisfied with receiving its legally-stipulated amount, the next debtor can step in to repeat the process. Now, if your income falls below a certain level, the creditor may not be entitled to the full 25%.

Some Specifics Concerning Wage Garnishment:

One’s monthly income can be garnished via wages and salaries, commissions, bonuses, pension, retirement incomes and other monetary sources. If you collect social security, you’ll be pleased to know it can’t be touched by creditors. The only time your social security can be garnished is if you were to owe the Federal government in some way—such as back taxes.

Don’t Fight Your Battle Alone:

If you can’t afford a lawyer, legal-aid offices are available that offer cost-free support concerning your legal rights. Additionally, you may qualify for a bankruptcy lawyer, free of charge, depending on your current income and other factors.

For more information concerning legal aid, go to www.LawHelp.org. Credit Card Lawsuit Defense Lawyers can help as well. Low to moderate-incomers can also take advantage of possible free legal aid—it’s about finding solutions to your financial dilemma and finally being able to breathe a whole lot easier!

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