Can I Pay Off a Judgement Without Wage Garnishment?

If you owe debt to a creditor, he may obtain a judgment to make you pay. Creditors can use judgments to garnish your wages, seize your personal property or levy your bank account. However, you may be able to pay off a judgment without enduring the embarrassment of a wage garnishment or property seizure.

Wage Garnishment Law

Creditors can't garnish your wages without first obtaining permission from the court. In some states, creditors may only need to obtain a judgment, while in other states, creditors may need to obtain a judgment and a court order for wage garnishment. Creditors can take only the lesser of 25 percent of your disposable income or the amount by which your weekly income exceeds 30 times the federal minimum wage, unless they are collecting certain debts, such as child support or back taxes.

Preventing Wage Garnishment

Before a creditor can start garnishing your wages, he must typically mail you a final demand for payment. If you pay your debt in full, the creditor can't garnish your paycheck. However, you should obtain proof of your payment in writing. In some cases, you may also be able to negotiate a payment plan with the creditor to avoid the garnishment, but the law doesn't require him to accept your offer.

Stopping Wage Garnishment

After the garnishment is in effect, making payments toward the debt won't typically stop the creditor from taking money out of your paycheck. However, you can stop a wage garnishment order by paying your debt in full. Once the debt is paid, you are no longer liable for it and the creditor can't continue to collect from your wages. You can also alter the garnishment if the creditor is collecting too much money from your paycheck by filing a formal request with the court.

Bankruptcy

If you can't afford to pay your debt in full immediately and your creditor won't agree to a payment plan, you may be able to prevent or stop a wage garnishment by filing for bankruptcy. If you file Chapter 7 bankruptcy, you may be able to discharge the debt without paying it in full. If you file Chapter 13 bankruptcy, you may be able to include the debt in your payment plan. In either case, the creditor can't garnish your wages after you file.