How to Break a Lease Due to a Wage Garnishment

Wage garnishment can make it impossible to make payments on a lease agreement. Wage garnishment allows a debt collector or government tax agency to receive a percentage of your paycheck each month. The percentage depends on various state laws, but the average is around 25 percent. For someone living paycheck to paycheck, that could make it impossible to afford lease payments on a house, apartment or automobile. Breaking the lease is possible, but even with a wage garnishment, the landlord or leaseholder may charge an early termination fee. A landlord or car leasing agency may not penalize you because of the hardship. It all depends on what you can negotiate.

Instructions

1

Check your apartment or rental home lease agreement if you're breaking a lease on your residence. Determine if the lease includes a buyout agreement. This allows you to walk away from the lease for a fee negotiated when you signed the lease. Usually, you can walk away for any reason -- including wage garnishment.

2

Meet with your landlord. Show proof of your garnishment, such as a letter from your bank, employer or a tax agency. Tell the landlord that you cannot continue paying the rent because of the garnishment and that you are preparing to move immediately. Ask the landlord to waive any early termination fee because of your predicament. Point out that you cannot pay the early termination fee because of the garnishment and that a lawsuit to force you to pay would only add to your troubles. Play up the sympathy factor as you point to the garnishment order.

3

Offer to sign a promissory note, if necessary, to break the lease because of your wage garnishment. A promissory note is a promise to pay a debt. Negotiate a fee that is less than the buyout agreement in your lease or less than what you would owe if you simply walked away. Make the due date some time in the future -- well after you expect your garnishment to end. Write the promissory note on paper using simple language, such as how much you are agreeing to pay, the number of installments, if necessary, and the due date. Both parties should sign.