Can A Credit Card Garnish My Wages or Not?

Can A Credit Card Garnish My Wages Or Not?

There is no question that having a lot of  piled up debt can cause a lot of stress in your life and it only gets worse as your balances increase and you fall even more  behind on your payments. Chances are it’s not even your fault at times  that you’re in this mess, but you still have to deal with it. You may be asking yourself can a credit card garnish my wages and yes, they can if they sue you.

A credit card company does not have the power to directly garnish wages and it  doesn’t matter if you owe a few hundred dollars, or tens of thousands, the card company themselves cannot take money directly from your paycheck. However, they can sue you in court and have a judge order that your wages be garnished.

Don’t Take the Suit Lightly

Believe it or not, credit card companies do not sue people all that often; not directly, anyway. If they are having too hard of a time collecting from you, they will send your account to a collection agency. These are the ones that are far more likely to sue you. Therefore, it is in your best interest to prevent that from happening and the  best way to do this is by contacting your credit card company right away, and explain your situation to them.

If you receive a notice from your employer about your wages being garnished but were never served with lawsuit papers, you should immediately contact a lawyer. Chances are good that the creditor/debt collector didn’t follow the correct process and you may be able to get the judgment overturned.

Ways to Protect Your Wages from Garnishment

If you really do owe the money to the credit card company or debt collector, then stopping the garnishment is difficult. However, you can file an extension for more time disputing   before going to court.

You can settle the debt with the creditor directly however, if a suit is already in place, they may not want to hear your story because they gave you time to pay.  

You can file for bankruptcy.

Some may differ but it does stop the garnishment and protects you from all other garnishments.

There is Help

Most credit card companies offer programs for people who are in a tough spot which  will  give you a break on interest or forgive late fees, as well as other things that will make it easier for you to pay. These programs typically last no longer than a year, but you can usually re-enroll when the year is up. While these programs are an excellent option, you have to make the first move to let the credit companies know what’s going on.

If things come to the point where you are still wondering “can a credit card garnish my wages?”, then you may be headed for court. Remember, this will give you a chance to explain your current financial situation to a neutral third party: the judge. Be sure to have proof of your income, expenses and all of your debt, just in case they ask. The judge will try to work out the fairest deal possible for all parties involved however, remember you are being sued and you can’t change that.