Many people responsibly try to use debt reduction and elimination methods such as refinancing and settlement to get back on their feet financially, but not everyone who does this is successful. Other people purposely avoid their debts. As a result, collection agencies sometimes have to use wage garnishment to get the money people owe. The amount you owe has little bearing on how easy it is for the collection agency to rectify your debt through your pay.
How Wage Garnishment Works
Regardless of how much a collection agency seeks to garnishee from your wages, the wage garnishment process remains the same. The collection agency must file a formal complaint with the court. After the agency files the complaint, you should receive a notification alerting you of the complaint. The next step is a hearing at which a judge hears evidence from both you and the collection agency. If the judge finds in favor of the collection agency, he issues a Writ of Garnishment, which the collection agency files with the court clerk and sends to your employer to show they are legally authorized to garnishee your pay. Collection agencies have a harder time collecting on any debt after the statute of limitations on the debt expires, because they lose the legal right to file a complaint after this happens.
Due Process
Due process applies to all case of wage garnishment no matter what amount a collection agency seeks. Due process means the collection agency has to prove you owe the debt and make a reasonable attempt to contact you to rectify the account delinquency outside of garnishment. It also means you have the right to defend yourself and that the collection agency can't take your money without your knowledge. Forcing collection agencies to file formal complaints to obtain garnishments is one way the government protects your consumer and credit rights.
What Due Process and Collection Requirements Mean
The requirements indicated via due process law and collection methodology mean that courts are not concerned with the amount the creditor seeks to garnishee, except to ensure the garnisheed amount does not exceed stipulated maximums. A creditor would need to go through the same procedure to garnishee a very small amount as they would to garnishee the allowed maximum. Courts worry more about verifying the creditor's right to collect than the owed amount.
The Bottom Line
It is not any easier for a collection agency to garnishee a small amount than it is for the agency to garnishee a small amount. However, a collection agency may determine that pursuing wage garnishment is not worth the hassle and legal expense if the amount you owe is low. A low debt amount puts you in a better position to negotiate as a result, which may allow you to avoid wage garnishment altogether.
0 comments:
Post a Comment