New Study Shows Staggering Percentage of Americans are Being Garnished - Are You at Risk? Steps to Protect Yourself!
In a recent study* providing the first national numbers available on the impact of wage garnishments, the findings show that a staggering 1 in 10 working Americans between the ages of 35 - 44 are experiencing a wage garnishment. That means that 10% of that adult sector is loosing 25% of their wages each pay period.
If you have unresolved debt, don't wait until your creditor traps you with a wage garnishment, take control today! Our firm advocates for resolution to debt issues and credit restoration by addressing the key factors that most impact your credit score. Call us today at 866-261-8282 for a free consultation with a licensed Michigan attorney. We offer phone consultations or in-office appointments at any of our six Michigan locations in: Detroit, Ann Arbor, Dearborn, Southfield, Warren or Flint. We offer same day legal protection for garnishments or other creditor actions.
Top Three Reason You Want to Avoid a Garnishment
1.) Derailed Budget
Garnishments can have an immediate and devastating effect on your budget. By missing ¼ of your income, you will most likely not be able to meet all of your monthly bills and debt obligations. Becoming late on a mortgage payment or vehicle loan can soon result in a foreclosure or repossession.
2.) Growing Debt
Unfortunately, once a judgment or garnishment is in place, it does not stop the additional interest charges, late fees, and attorneys fees which increases the debt and prolongs the garnishment.
3.) Dropping Credit Score
Your payment history has the biggest impact on your credit score. Your debt load or debt-to-income ratio has the second highest influence. Stale debt, delinquent payment reporting and mounting interest charges and late fees can continue to depress and decrease your credit score. This in turn affects your ability and/or the cost of gaining new credit.
Are You at Risk of a Judgment or Wage Garnishment?
Many people mistakenly believe they can avoid their creditors, wait out the statute of limitations and be home free. This is often difficult, if not impossible to do. Why?
- More Aggressive Creditors
Because of the recent foreclosure-boom and the recession aftermath, creditors can no longer afford to write-off uncollected debts. In this same study of national garnishment patterns, it was cited that the highest rate for garnishments was in the Midwest. In the Midwest more than 6% (1 on 16!) of employees earning between $25,000 - $40,000 were experience wage seizure as a result of consumer debts. Creditors are becoming increasingly more cunning in their efforts to collect on past-due bills including selling the debt to a third-party professional collection firm.
- Judgments Usually Lead to Garnishments
Most consumers assume that there is a statue of limitations on debt collection. This is true½.until your creditor secures a judgment. Once the judgment is in place it can be renewed almost indefinitely meaning no end to harassment, negative credit impact and mounting debt. Judgments are relatively easy for your creditor to obtain and difficult for you to fight unless you can prove that the debt is a result of fraudulent behavior.
In most cases, if the creditor goes through the effort to secure a judgment they will take the next step to secure payment on that judgment by pursuing a wage or bank account garnishment.
- Don't Be Fooled by Charge-offs
A Charge-off on your credit report does not mean that you are legally released from the debt. A "charge-off" is simply an accounting term for creditors to indicate if they believe the debt is non-collectible. This does not stop your creditor from selling this debt to an aggressive third-party collection agency to try and recoup some of their losses. This unleashes a team of trained (and often ruthless) collection professionals to pursue you for the debt they purchased.
Protect Yourself! Debt Resolution = Peace of Mind
Don't become a garnishment statistic. Proactively deal with your debts to protect your budget, reduce stress and avoid future financial headaches. If you are already trapped in a garnishment, we can bring swift and legal resolution to garnishments and other creditor actions, such as foreclosure, vehicle repossession, tax levy, etc. By filing for bankruptcy protection, we can either eliminate the debt through a Chapter 7 or consolidate the debt based on your repayment terms through a Chapter 13 reorganization. If you are currently being garnished and have had in excess of $600 removed from your bank account or wages in the last 90 days, we can get the money back to you. Call us today at 866-261-8282 for a free consultation. With over 50 years of experience in legal debt resolution, we can help you find the swiftest path to financial freedom. *The report completed by ADP, the nation's largest payroll services provider, in conjunction with ProPublica studied 2013 payroll records for over 13 million U.S. employees.