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Garnish Wages in Debt Settlement Program

Can a garnishment be added to my debt settlement plan?

We signed on with a debt consolidation group 10/09. We have continually provided them with all the paperwork they ask for. We have been paying them the agreed upon fee. Over a month ago one of the creditors that was provided to our debt consolidation group began garnishing my wages. I'm not getting straight answers from the debt consolidation group and they keep saying they are working on it. They forgave our monthly payment to them because of the garnishment, which we thought this debt was being handled by our group. Can the garnishment be stopped and put under the consolidation where it was suppose to be in the first place? I live in Georgia. Thanks

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Bill's Answer
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I will assume you are enrolled in a debt settlement program. Debt settlement, also called debt negotiation and debt negotiation, is a process by which your lenders agree to forgive a part of your balance, saving you up to 60% of what you owe. You then only have to pay the new agreed-upon sum.

A reduction in your total debt is the biggest benefit. If your debt is so large that you cannot pay it off and are facing bankruptcy, this is a less harsh option. It is also the only option to distressed consumers who do not qualify for bankruptcy.

Cost and brief time-to-debt-freedom are two big pluses in favor of debt settlement. A downside is the risk that a creditor may sue to recover the debt owed. There is no requirement that creditors negotiate a debt, and in some instances a creditor will sue a debtor, receive a judgment, and ask the court for a garnishment, levy or lien.

Apparently, one of your creditors sued you and won. It then asked for a judgment, which it received. It is allowed to garnish your wages in your state, which you indicated is Georgia. See the resource Georgia Collection Laws to learn more about your rights in Georgia.

This raises the question, "Now what?" If you received a summons to appear and did not answer, then the creditor won a default judgment. If you never received a summons, then see an attorney in your state to discuss reversing the judgment because a hallmark of civil procedure is that the defendant must receive adequate notice of a pending lawsuit.

I hope this information helps you Find. Learn & Save.



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