5 signs your debt could lead to wage garnishment
Summary
Many Americans face the risk of wage garnishment due to unpaid debts. Wage garnishment means part of your paycheck is taken by creditors to pay off debt, and it usually happens after legal action or for certain federal debts.Key Facts
- Debt can lead to wage garnishment if payments are missed and the creditor takes legal action.
- Creditors must sue and get a court judgment to garnish wages for most consumer debts like credit cards or medical bills.
- Federal debts such as defaulted student loans, unpaid taxes, and child support can lead to garnishment without a lawsuit.
- A "charge-off" means the lender gives up on collecting the debt and sells it to a collection agency, which may pursue legal action more aggressively.
- Being served with a lawsuit is a strong sign that wage garnishment might follow.
- Ignoring court summons often results in a default judgment, making wage garnishment easier for creditors.
- If collection phone calls stop after threatening lawsuits, it may mean legal steps are underway.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.