Being in debt can be an extremely stressful position to be in, and for many, it can lead to a vicious cycle. This vicious cycle is perpetuated by fines and interest that is accumulated over time. Many debtors also experience harassment from creditors, which can make it even harder to deal with the situation that they are in.
Remedies for gaining back unpaid debts
If you are a business owner who has not been paid after providing a service or commodity to a customer, your cash flow may be suffering as a result, and you will want to gain back the money that you are owed. As a creditor, you have several options available to you.
What actions can creditors take against me?
If you are struggling to manage your unpaid debts, you likely feel stressed every time you open your mailbox and every time you get a call. Owing money to creditors can be a terrible feeling because you can feel tremendous guilt and anxiety, but you also probably feel powerless to do anything about it.
Can bankruptcy stop wage garnishment?
Being subject to wage garnishment can be very demotivating. It's likely that you will feel that you are no longer in control of your life and your finances because you work hard only to have a portion of your wages taken away from you before you receive them.
Dealing with the threat of wage garnishment
Unfortunately, unpaid debts are becoming extremely common, especially when businesses do not require immediate payment for a service that they provide. If you are a debtor who is facing a threat of wage garnishment from creditors, it is important to understand the law.
Your right to collect debt as a creditor
As a creditor, it can be very frustrating to experience missed payments from a customer. It can take a significant amount of time to chase debtors for the money owed, and this can create additional costs for your business.
What to do when your debtor files for bankruptcy
If you are owed payment by a client, it is likely that your cash flow has suffered as a result of this. Depending on the amount owed, this could be a very stressful situation, and it can be made even worse if you learn that the debtor has filed for bankruptcy.
Common questions about wage garnishment
If you have been avoiding paying certain debts in the state of Washington, you may be concerned about becoming subject to wage garnishment provisions. Many people have misconceptions about wage garnishment, and as a result, they imagine that they will be left without any salary at all, even after they have completed honest work.
Can I stop wage garnishment by filing for bankruptcy?
If you have acquired debts that have resulted in wage garnishment, this can be a very demoralizing experience. Being subject to wage garnishment can make you feel as though you are working only to keep your head above water, and it can feel impossible to have a good quality of life with the wages that you are left with.
Can a creditor take my personal assets?
If you're in the midst of a devastating debt situation and you haven't been making your monthly payments, the creditor can actually sue you to collect your unpaid debt. In these cases, the creditor can pursue an enforceable court judgment against you by proving that you have failed to pay a specific amount owed. If the creditor files such a lawsuit, you can fight it in court. If you fail to contest the matter, the judge may automatically rule against you.
