Not making payments on time and failing to pay debts off can mean more headaches for American debtors. Millions of American debtors get their pay garnished, due to lack of payments on debts. However, garnishment can be avoided by taking action before it is too late.
Wage garnishment is when a creditor periodically withholds a portion of a debtor's income from employment to satisfy a judgment. A writ of continuing garnishment is issued to the debtor's employer and the employer withholds the wages from the employee. The wages are then turned over to the creditor. Wages can be garnished until the amount of the judgment has been satisfied, which may include interest and attorney's fees. The amount of wages that can be withheld is determined by the Credit Protection Act 15 U.S.C. 1673.