Running up a large debt on a credit card can have a number of bad consequences for the debtor. Among them is the prospect of being sued in civil court for the amount owed. If the company wins, the person may find a portion of his wages taken out of his paycheck as part of process called wage garnishment. However, a credit card company is not allowed to garnish a person's wages without a court order.
Lines of Credit
When a person borrows money against a line of credit, he must, in keeping with the terms of the line of credit contract, pay the money back in a specific amount of time, at a specific rate of interest. Failure to do so constitutes default on a debt and a breach of contract. In the case of a credit card company, the company may attempt to sue the borrower in court to get paid back what he borrowed.
Civil Judgments
When a credit card company takes a debtor to court, it is seeking a civil judgment against the debtor. This civil judgment certifies that the person does indeed owe the credit card company the amount of money that he failed to pay back. Once this debt has been legally recognized, the credit card company is free to pursue more aggressive methods of being paid back what it is owed, including garnishment.
Wage Garnishment
To garnish a person's wages, a credit card company must receive a court order from a civil court judge, usually the same judge that ruled in the company's favor in the breach of contract case. A credit card company can only garnish wages with a judge's permission. The court order must grant the company explicit permission to garnish a certain amount of wages from a certain employer. The company cannot work outside the bounds of this order.
Considerations
If a company attempts to garnish a person's wages extrajudicially, it is acting in violation of U.S. federal law. This is true even if the debtor agrees to the garnishment. Accordingly, the company may be subject to severe penalties. If a person believes a company is attempting to garnish his wages without a court order, he may wish to report the crime to his state's attorney general.
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