Wage Garnishment

A wage garnishment and a wage assignment are ways that creditors use to collect unpaid debts. A wage garnishment is different from a wage assignment. However, both wage garnishments and wage assignments are when debtors pay for their debts out of their pay or salary.

What is a wage garnishment?

A wage garnishment is when a court enters a judgement against a debtor. A wage garnishment allows the creditor to have a certain portion of the debtor's salary taken to pay off the debt. When a debtor defaults on a debt, the creditor can use wage garnishment as a way to collect from the debtor. In order to serve a debtor with wage garnishment, the creditor must take the case to court, the court must hear the case, rule on the case, and order a wage garnishment.

What is a wage assignment?

A wage assignment or voluntary wage assignment is when a debtor agrees to have part of his or her pay (wage or salary) sent directly to the creditor to pay off some of the debt owed.

What are the differences between a wage garnishment and a wage assignment?

The main difference between a wage garnishment and a wage assignment is that a wage garnishment has to be ordered by the court and served legally to the debtor. A wage assignment, on the other hand, is voluntary and is the agreement between a creditor and a debtor without the court involved.

Should I enter into a wage assignment agreement?

Sometimes, creditors will be very eager to do a wage assignment agreement with debtors. Creditors may be very convincing and convince the debtors that wage assignment is the only plausible option. But, is a wage assignment or wage garnishment a good idea? In most cases, a wage garnishment or wage assignment is not a good choice for the debtor.

So, no - you should try to avoid entering into a wage assignment type of agreement if at all possible. Don't enter into a voluntary wage assignment contract. The only time you should enter into a wage garnishment or wage assignment type of contract is when the court orders it. The creditor must take your case to court and the court must hear the case before a wage garnishment can be ordered. However, if the court orders a wage garnishment or wage assignment, you must comply.

Also, once you have entered into a voluntary wage assignment contract, it may be difficult to revoke and stop wage assignment. Therefore, when dealing with creditors, bear in mind that they can try to get you to sign a wage assignment contract or take your case to court for a wage garnishment order.