How to Prevent Garnishment From a Collection Agency

If you fail to settle your unpaid debt with a collection agency, a judge may order a garnishment against you. A garnishment is a legal proceeding that allows a creditor or collection agency to collect money that is owed to them, usually through wage garnishment---a portion of your paycheck is withheld by your employer to repay the debt---or through a bank account levy---your bank account is frozen and the funds are seized. Learn how to avoid having your wages, bank account or other financial assets garnished.

Instructions

1

Contact the collection agency to negotiate a payment plan. Perhaps the collection agency will allow you to make monthly payments on your account until the debt is paid in full. Be sure to agree to a payment plan that is both reasonable and affordable for your budget.

2

Ask the collection agency to send you a confirmation letter. It is a good idea to have your payment plan arrangement in writing just in case you need it for future reference. Simply ask the collection agency representative to send you a confirmation letter outlining the terms of the agreement.

3

Submit your monthly payments on time. It is important that you make all of your payments to the collection agency in a timely manner. Even if you miss a couple of payments, the collection agency may decide to move forward with a garnishment.

4

Pay your balance in full. Once you make your final payment to the collection agency, your balance is paid in full and you no longer have to worry about a garnishment. Be sure to ask the collection agency to send you a letter stating that you made all of the required payments on your account and you have a zero balance.

5

Verify that your account status has been updated with the credit bureaus. You will need to order a copy of your credit report from all three major credit bureaus, in order to confirm your account status. Please note that although you paid your balance in full, the credit bureaus will not delete your account information from your file. They will simply update your status and show that your balance is paid in full on that particular account.