How to Change Wage Garnishment
Review the garnishment notice., Contact the creditor., Offer a lump-sum payment., Get any agreement in writing.
Step-by-Step Guide
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Step 1: Review the garnishment notice.
The notice you received about the garnishment should contain contact information for the creditor who took out the garnishment.
Make a note as well of any deadlines included on the notice.
You may have a limited time to contact the creditor before the garnishment begins.
Typically you'll have more ability to work out a deal with the creditor if you can get ahold of them before the garnishment begins.
If you wait until the creditor has already garnished money from two or three paychecks, they probably will be less willing to talk to you. -
Step 2: Contact the creditor.
Use the information from the garnishment notice to call or write to the creditor and begin negotiations to remove the garnishment.
Keep in mind that many creditors prefer to receive voluntary payments than to go through the hassle of garnishment, which typically is viewed as a last resort.You may be able to negotiate a payment plan that impacts your finances less and doesn't carry the stigma the garnishment would.Find out if the company is willing to accept automatic debit of the payments from your bank account, which provides a little more assurance that the payments will be made on time.
Take notes if you're talking to a customer service representative on the phone.
Before you end the call, read your notes back to the representative and ask him or her to confirm that they are accurate., If you have the ability to do so, a lump-sum payment – even if it doesn't cover the total amount you owe – may be enough for a creditor to remove a garnishment.
Keep in mind that the garnishment, which the creditor has already gone through the trouble to get, is already providing the creditor with a monthly payment.
Typically you'll have difficulty getting a creditor to agree to lower monthly payments to pay off the debt, unless you're willing to offer a decent lump-sum payment up front.For example, you may have or be anticipating a tax refund that could cover a significant portion of the debt.
Paying off that amount might make the creditor more willing to work out payment arrangements with you directly and cancel the wage garnishment.Even if you don't have the money to pay off the debt, you may be able to get a loan from another bank or credit card company, or sell something of value to raise the funds.At the least, paying off a chunk of the debt means the garnishment will end sooner, even if the creditor doesn't agree to cancel it.
The creditor also may agree to change the wage garnishment by taking less out of each paycheck., If you reach a deal with the creditor, make sure you have written confirmation in the event the garnishment continues.Written acknowledgement of your agreement from the creditor also can protect you if the creditor later claims you agreed to larger payments than you did, or settles the debt for a lesser amount and then claims you owe more.
Once the agreement is finalized and you have written proof, you may want to follow up to make sure the creditor actually has stopped the garnishment. -
Step 3: Offer a lump-sum payment.
-
Step 4: Get any agreement in writing.
Detailed Guide
The notice you received about the garnishment should contain contact information for the creditor who took out the garnishment.
Make a note as well of any deadlines included on the notice.
You may have a limited time to contact the creditor before the garnishment begins.
Typically you'll have more ability to work out a deal with the creditor if you can get ahold of them before the garnishment begins.
If you wait until the creditor has already garnished money from two or three paychecks, they probably will be less willing to talk to you.
Use the information from the garnishment notice to call or write to the creditor and begin negotiations to remove the garnishment.
Keep in mind that many creditors prefer to receive voluntary payments than to go through the hassle of garnishment, which typically is viewed as a last resort.You may be able to negotiate a payment plan that impacts your finances less and doesn't carry the stigma the garnishment would.Find out if the company is willing to accept automatic debit of the payments from your bank account, which provides a little more assurance that the payments will be made on time.
Take notes if you're talking to a customer service representative on the phone.
Before you end the call, read your notes back to the representative and ask him or her to confirm that they are accurate., If you have the ability to do so, a lump-sum payment – even if it doesn't cover the total amount you owe – may be enough for a creditor to remove a garnishment.
Keep in mind that the garnishment, which the creditor has already gone through the trouble to get, is already providing the creditor with a monthly payment.
Typically you'll have difficulty getting a creditor to agree to lower monthly payments to pay off the debt, unless you're willing to offer a decent lump-sum payment up front.For example, you may have or be anticipating a tax refund that could cover a significant portion of the debt.
Paying off that amount might make the creditor more willing to work out payment arrangements with you directly and cancel the wage garnishment.Even if you don't have the money to pay off the debt, you may be able to get a loan from another bank or credit card company, or sell something of value to raise the funds.At the least, paying off a chunk of the debt means the garnishment will end sooner, even if the creditor doesn't agree to cancel it.
The creditor also may agree to change the wage garnishment by taking less out of each paycheck., If you reach a deal with the creditor, make sure you have written confirmation in the event the garnishment continues.Written acknowledgement of your agreement from the creditor also can protect you if the creditor later claims you agreed to larger payments than you did, or settles the debt for a lesser amount and then claims you owe more.
Once the agreement is finalized and you have written proof, you may want to follow up to make sure the creditor actually has stopped the garnishment.
About the Author
Margaret Hughes
Dedicated to helping readers learn new skills in cooking and beyond.
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