Facing Garnishment? Negotiate These Payment Terms With A Creditor

Posted on: 2 August 2019

Having your wages garnished because you owe money to one or more creditors is a difficult situation to face. Fortunately, you don't necessarily need to let things get to this point. When a creditor has been repeatedly trying to recover the funds that you owe and it's clear that garnishment will be the next step, you should hire a legal representative who specializes in garnishment cases and begin to negotiate with the creditor. Often, you'll be able to successfully avoid garnishment and the challenges that go with it by working out these payment details with the help of your attorney.

Initial Payment

One of the ways that you can ease your situation is to make an initial payment to your creditor. This money can be enough to prevent him or her from moving forward with garnishment proceedings, although the amount of the money that you provide will influence how the creditor reacts. The creditor may ask for a certain percentage of what you owe up front as a sign of goodwill. Your attorney can negotiate this amount based on what you feel that you're able to pay, but coming to a consensus is critical for preventing wage garnishment.

Payment Amount

Beyond giving the creditor an initial payment, you'll also need to work out a payment plan by agreeing to an amount that you can give at regular intervals. This is another figure that your attorney can negotiate with the creditor on your behalf. The amount will often be less than the amount of your initial payment. For example, if you've agreed to offer an initial payment of $500, your subsequent payments might be just $100. Again, you'll need to ensure that this number is feasible so that you can work to pay off what you owe, rather than get into further financial trouble.

Payment Frequency

Finally, you'll also need to agree to a payment frequency with the creditor. Some creditors will want payments weekly or every two weeks, while others might agree to payments at other intervals. Speak to your attorney to come up with a plan that will suit you. For example, if your job pays you every two weeks, making a payment to the creditor at the same interval might be a good idea because you know that you'll have the money. By making an agreement in the above ways, you should be able to keep the garnishment of your wages from happening.

Contact a resource like Alaska Cascade Financial Services in order to get professional help with garnishment law.