When creditors are owed money, they have a right to get this money back. However, they cannot do anything necessary to gain back what they are owed. This is because there are laws in place that protect debtors.
Debtors are protected by creditor harassment laws. This means that creditors cannot threaten, repeatedly call, or try to deceive the creditor with the intention of gaining back their owed funds. However, depending on the circumstances, they may be able to ensure that they are repaid through wage garnishment.
What is wage garnishment?
Wage garnishment is a legal procedure that enables a creditor to be paid back their debts by taking away the debtor’s wages before they have access to them. While this is a very severe situation for a debtor to be in, wage garnishment only happens in exceptional circumstances.
How can creditors legally garnish wages?
Creditors must schedule a hearing with the courts and prove that the debtor has failed to make owed payments.
What protections are in place for debtors regarding wage garnishment procedures?
The Consumer Credit Protection Act (CCPA) demands that garnishment sought in federal court does not exceed 25% of a debtor’s weekly disposable income. This is to ensure that no debtor is subject to extreme financial hardship as a result of wage garnishment. Additionally, employees cannot be fired because their wages were garnished – federal laws protect them from this.
If you are interested in what rights creditors have when it comes to regaining the debts that they are owed, it is important that you understand federal law as well as where the law stands in Washington.