How to Respond to a Sheriff Wage Garnishment Letter for Credit Card Default

If a sheriff's deputy serves you with a wage garnishment letter, it means that you have lost a court proceeding. Generally, a creditor will attempt to contact you, first by direct mail and phone, then by registered letter. If they don't hear back from you and if the amount of the debt is large enough, your creditor may file a motion for a judgement in court. You should receive notification of the hearing, but if you miss the notification and don't show up, you may get a default judgement against you, which is frequently enforced by a wage garnishment action.

Instructions

1

Contact the creditor. Most creditors would rather hear from you and have you work out a payment plan than go through the time, expense and ill-will associated with pursuing a wage garnishment. You may be able to halt the garnishment by agreeing to a payment plan, especially if you commit to a series of bank drafts in advance. This may be a better solution for all involved.

2

File a claim of exemption. A certain amount of wages is generally exempt from garnishment. This amount varies by your jurisdiction, although in the case of IRS debt a national standard applies. To file a claim of exemption, you may wish to retain the services of an experienced attorney licensed to practice in the state in which the creditor obtained the garnishment order.

3

File for bankruptcy. If you cannot come to terms with the creditor, and you cannot live on what is left over after the garnishment, you may have little choice but to file for bankruptcy. Depending on the circumstances, you can choose to work out a reorganization bankruptcy under Chapter 13, or file a liquidation bankruptcy under Chapter 7. Bankruptcy filings legally stop all collection efforts, including garnishments, until the bankruptcy is complete. To prepare for a bankruptcy filing, download Form B-200 from the U.S. Bankruptcy Court. This document serves as a checklist for bankruptcy preparation and filing.