Wage garnishment and debt is a very common question to folks who are new to the debt settlement industry. At Nationwide Debt Reduction, one of the common questions asked is, “Can my wages be garnished by the credit card companies?” The answer is yes, that is one of the options that is available to credit card companies. However we have never seen it happen as we take a pro-active approach to negotiating and settling credit card debt. The rules are also so stringent on the garnishment of a person wages, that most creditors will seek another means to recapture their monies.
In addition, since credit card debt is “unsecured debt”, most consumers would file for bankruptcy before allowing a creditor to garish their wages.
On the other hand, the IRS can garish a persons wages up to 25% of your net income per pay period until you have satisfied your IRS tax bill. By law, if a wage garnishment for your funds is approved by the courts, your employer will be required to set aside a predetermined amount of your wages for the IRS. While many people think this is harsh, we are big advocates of paying your taxes when they are due. If you cannot, you should contact the IRS right away and let them know your situation. Contrary to popular belief, the IRS will try and work with you in order to help you pay your taxes.
By taking a pro-active approach to negotiating and settling debt, we contact the creditors up front. We let them know that you are in a debt settlement program and our negotiators then negotiate a discounted dollar amount to what you owe depending upon your specific financial hardship.
For more information on this or how a debt settlement company can help you, please call us toll free number at 1-800-890-6658 between the hours of 8:00 am and 5:00 pm PST. One of our trained professionals will try and help you with
your situation. There are programs whereby a wage garnishment by the IRS can be lifted, however it will take someone who is qualified in tax law to assist you.