In this article I am not trying to steer you in anyway from paying your debt. If you have a legitimate debt and that you have to pay it, then you just don't have any other option but to pay it. However, looking at the critical situation that a person has to go, it might be financially tough at that point of time to swallow the creditor's power of making you pay the debt.
I was in a situation where a judgment was entered in my name and the creditors were targeting towards my bank account and a car. But somehow, they ended up targeting towards their favorite area, my wages. The chances of recovering the debt in wage garnishment are more than any other possible options. Wages can be garnished again and again until the debt is paid off or you are leaving that employer.
There are some states in the United States like Pennsylvania and Texas that do not allow wage garnishment. The rules to garnishment in Michigan are very consumer friendly. The creditor is restricted to garnish only one paycheck at a time. If he seeks to garnish the wages of that particular person, he has to get court orders again for a new paycheck. But the most common law is that garnishment remains on a paycheck till the time the debt has been paid off.
The percentage of garnishing the wages varies from state to state, but it should be less than thirty-five (35) times the Federal minimum wage. Minimum wage is $5.15 per hour. After complete calculations, your NET paycheck in no case should be less than $180.25 per week.
If the creditor knows the place of your work, then there is hardly anything that you can do to avoid the garnishment. But if really want to escape it, you can think about changing your employers. This stops all garnishment activities as because you stop getting paychecks from the particular employer. After you have changed work, creditors won't know your new workplace. At this time, you should not apply for credit. You don't need to answer any creditor except if there is an information Subpoena or a court ordered Questionnaire. This has to be answered by you under penalty of Contempt of Court. According to the research done by many attorneys, they claim that the number of lawyers using Information Subpoena are next to none.
I have found out one more way to keep myself away from the garnishment at a time when I am not in the position to pay my debt. I will definitely pay my debt once my position improves. But at this time, I can avoid a garnishment by loading my paycheck with as many deductions that hold priority over the garnishment. Adding these deductions, you might have to pay now but you will get the money back later. You can weight your paycheck by adding Alimony or Child Support. Also, you can increase your Federal and State tax withholding. If your net pay is above $180.25 as per the Federal Minimum, try to take the home pay lower than this figure so that wages cannot be garnished. Though it might be very tough to live under a paycheck with this amount, but if you want to avoid garnishment, you may have to give a try.
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