Fear, anxiety, and avoidance are natural responses in situations where we feel powerless, and getting behind on bills or too deep in debt can easily trigger these emotions in even the strongest individuals. These emotional responses are valid, but your creditors gain more legal authority to act without your consent the longer you avoid talking to your lender. When you’ve missed payments and defaulted on your loan or credit card agreement, the lender’s first response will be attempting to contact you to negotiate another payment plan. If you don’t respond, then your debts may be given over to a debt collection agency.
Debt collectors have the legal authority to sue you for compensation. If you fail to defend your position and a judge rules that you owe the lender, then you won’t have any legal right to fight the debt anymore. When this happens, the lender can garnish your wages. Your employer will receive notice and must withhold some of your paycheck for the lender. If you are self-employed, then the lender can legally pursue liens on any property you own, the right to seize your property or a right to levy your bank accounts. There are certain restrictions and limits on wage garnishment, and a lender can never take your entire paycheck. Your best course of action when you are facing overwhelming debt, collection agencies, a court summons or wage garnishment is to contact an experienced debt attorney to learn about your options.
Attorney Joel R. Spivack has helped hundreds of clients get out from under the chokehold of overwhelming debt using customized strategies he has developed over his 30 years working in bankruptcy law. You can rely on his experience and expertise to advise you on your financial matters. To learn more about your bankruptcy options, contact the law office of Joel R. Spivack at 856-488-1200 or via our online contact form to get started today.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.
