How to Stop Wage Garnishment From a Junk Debt Buyer

Junk debt buyers are debt collectors. They specialize in purchasing old, delinquent credit accounts, often for pennies on the dollar. Junk debt buyers will often file lawsuits in small claims court to collect the full amount due on the accounts. Many people fail to even show up for the court hearing, according to the New York Times, and that makes for an easy victory for the junk debt buyer. From there the junk debt buyer asks the court for permission to garnish your wages, with approval often granted. Stopping the garnishment is very difficult, according to the BCS Alliance credit and debt website.

Instructions

1

Contact the junk debt buyer. Offer to settle the account in a lump sum. If you don't have the money, try to take out a loan or borrow from friends and family. The wage garnishment gives the junk debt buyer tremendous leverage because he is being paid money directly from your paycheck. Therefore, it's unlikely the junk debt buyer will agree to an installment plan at this stage.

2

Contact a bankruptcy attorney if you cannot pay off the debt. Filing for bankruptcy will stop a wage garnishment. Bankruptcy is obviously an extreme measure, and you might want to avoid this. Have your bankruptcy attorney call the junk debt buyer; it could lead to a settlement with favorable terms, such as installments. Rather than lose the wage garnishment to bankruptcy, the junk debt buyer might agree to a payment plan.

3

File a "claim of exemption" with the court. This legal maneuver allows you to appear before a judge and explain that the wage garnishment is so severe that it leaves you with too little money to live on. Obtain a claim of exemption forms are available at your county courthouse. When you appear in court, you must detail all your income and expenses for the judge, who has the authority to end the wage garnishment. However, you still will remain liable for the debt, and must work out a payment arrangement with the junk debt buyer.