Wage garnishment can be a significant financial burden, automatically deducting a portion of each paycheck until the debt is resolved. When unaddressed, this debt and its accrued interest can restrict your earning potential for years.
Fortunately, in this article, our experts at Anderson Bradshaw Tax Consulting are breaking down the most effective methods to mitigate or stop wage garnishment based on your personal situation.
The 4 Strategies to Halt Wage Garnishment
When the court orders your employer to withhold a percentage of your income to pay back the creditor, it might seem like the issue is out of your hands. Fortunately, with the help of debt experts, that doesn’t have to be the case.
Our tax relief consultants can employ a number of strategies, depending on your personal situation, to relieve the burden of wage garnishment. These tactics may include:
- Challenging the Wage Garnishment Order
- Filing a Claim of Exemption
- Negotiating a Payment Plan
- Filing for Bankruptcy
Challenging the Wage Garnishment Order
If you believe you have grounds to challenge the garnishment, it’s important to act quick. If the wage garnishment is inflicting serious financial hardship or if the court order contained an error, you could be eligible to reduce or remove your obligation. This method can be extremely effective, but it requires thorough understanding of the local laws and guidelines, as well as solid evidence to support your case.
Filing a Claim of Exemption
Exemption forms allow you to request a reduction or removal of your wage garnishment. If you are struggling to support your family due to the wage garnishment, you could be eligible for an exemption. Some states also provide exemptions for specific situations, such as being the head of a household. Because of this, it’s important to review your state law or get in touch with a tax professional to determine if any exemptions are applicable to your situation.
Filing for Bankruptcy
Filing for bankruptcy is often the quickest and most effective way to stop wage garnishment, providing immediate relief from the withholding. As soon as your case is filed, creditors lose their right to garnish wages, and in some cases, creditors could be obligated to refund the previous 90 days of garnished funds.
Negotiating a Payment Plan
In most cases, wage garnishment is the last resort. Because of this, creditors are often still willing to negotiate a payment plan to repay your debt in manageable installments. While this option doesn’t erase the debt, it opens the floor for a solution that fits your monthly budget without garnishing your wages.
How to Stop Wage Garnishment Today
When faced with wage garnishment, it’s important to act quickly to reduce financial strain. To determine which of these strategies is best for your situation, begin by consulting an expert. At Anderson Bradshaw, our tax consultants can easily identify and take advantage of the optimal strategies for your wage garnishment, ensuring the most effective approach.
To get started, contact the highly reputable and experienced Anderson Bradshaw Tax Professionals at 877.550.3911 or visit AndersonBradshawTax.com to learn more. With over 32 years of experience, our experts are equipped with the expertise needed to help resolve your wage garnishment.
