Debt collectors put significant effort into collecting debts through voluntarily payment. Unfortunately, not all debtors have the means or the inclination to set up a voluntary payment plan. In this case, the collector may pursue more forceful collection methods that allow it to seize a debtor's assets. One such method, wage garnishment, gives the collector the ability to seize money the debtor's employer owes to him in wages before the debtor receives his paycheck.
The Lawsuit
A collector cannot simply decide to seize your wages and then do so. It must seek out legal permission to garnish your paychecks in the form of a court judgment. Debt collectors obtain court judgments by suing debtors. After a successful debt collection lawsuit, the judge grants the debt collector a judgment in its favor.
Depending on the collection agency's policies and your state laws, it could be years before a collector files a lawsuit against you. After filing the lawsuit, your district's case load determines how long the collection agency must wait for a court date to present its case and obtain the judgment that will allow it to garnish your wages.
Employment Information
A collection agency cannot garnish your wages without knowing where you work. If you voluntarily provide the information or the collection agency already knows the name of your employer, it can apply for a wage garnishment order immediately after docketing its judgment. If it does not, it must spend time track down your employer---increasing the length of time the company must wait before collecting the debt.
Waiting Period
The wage garnishment cannot commence immediately following the lawsuit. The collector must first wait for a certified copy of its judgment and file the judgment with the court clerk. This "dockets" the judgment---making it an official part of the county's public records. The court clerk can then issue a wage garnishment order.
Some states, such as Connecticut, enforce a mandatory waiting period that begins as soon as an employer receives a wage garnishment order from a collector. The waiting period gives you the opportunity to contest the judgment or notify your employer of any garnishment exemptions you qualify for.
Employment
Collectors cannot execute a wage garnishment against you unless you have a job. Your unemployment does not, however, strip a debt collector of its right to sue you. If a collection agency obtains a judgment against you, it can wait until you find employment to apply for a wage garnishment order with the court---even if it takes you several years to find a new job.
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