Facing Wage Garnishment? What American Tax Solutions Wants You To Know
Los Angeles, CA - ( NewMediaWire ) - September 14, 2020 - If you’ve received a phone call or letter notifying you that your wages are about to be garnished in order to pay your taxes or credit card debts, it’s likely that you’re not sure what to do next. While facing wage garnishment can be scary, American Tax Solutions can help. Check out these options for stopping wage garnishment without having to declare bankruptcy.
American Tax Solutions recommends immediately responding to any notification of wage garnishment. While it may be tempting to ignore the letters, doing so can cause the process of wage garnishment to move more quickly, shortening the amount of time that you have to create a plan. American Tax Solutions recommends talking with the company and asking them if they’ll accept partial payments. According to American Tax Solutions, many companies prefer to go this route due to the time and paperwork associated with wage garnishment.
Researching the laws in your state is also important if you’re faced with a wage garnishment. In most areas, only 25% of your income can be garnished, and other states have even tighter laws regarding what a company is able to take out of your paycheck. If a company is attempting to garnish your wages at a higher rate than your state allows, object to the garnishment immediately. You can also object to the garnishment if you feel you were not properly warned that the garnishment was about to begin.
American Tax Solutions also recommends attending the objection hearing to try to work out a plan. Showing up says a lot about your commitment to resolving the issue, and can make all the difference in whether your creditor is willing to work with you.
Working with a financial management company is also a smart move, according to American Tax Solutions. They can negotiate on your behalf, and know the ins and outs of the process of stopping wage garnishment better than someone who is not familiar with the industry.
In the event that wage garnishment begins, know that you can continue to talk to and work with the creditor, especially if your circumstances change. For example, if you’re gifted money or receive a promotion at work, you may be able to pay off some of the amount you owe, reducing the amount of money that’s garnished from each paycheck, according to American Tax Solutions.