At any given time, about 1% of US workers are probably experiencing a wage garnishment. Wage garnishment can feel like a heavy weight on your shoulders, especially if you're trying to regain financial stability. Many people wonder if switching jobs will put an end to their wage garnishment or if there are other ways to stop it. Let’s break it down into simple terms so you can understand your options and take action.
Will Changing Jobs Stop Wage Garnishment?
The short answer: No, changing jobs won’t stop wage garnishment. Here’s why:
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Court Orders Follow You: Wage garnishment is typically ordered by a court. Once a garnishment order is in place, your new employer will be notified by the creditor or the court to begin deducting wages from your paycheck.
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Creditor Notifications: Creditors actively track your employment status through databases and other means. When you change jobs, they’ll find your new employer and send the garnishment notice there.
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Federal Law Requirements: Employers are legally obligated to comply with wage garnishment orders. So, while you might see a temporary pause as you transition to a new job, the garnishment will resume as soon as your new employer processes the order.
Instead of relying on a job change to fix the issue, it’s better to address the garnishment directly.
How to Escape a Wage Garnishment
Escaping a wage garnishment requires a proactive approach. Here are the most effective ways to resolve it:
1. Pay the Debt in Full
The fastest way to stop a garnishment is to pay off the debt entirely. While this isn’t feasible for everyone, it’s worth considering if you have access to savings or other financial resources. Once the debt is paid, the garnishment will cease.
2. Negotiate a Settlement
Reach out to the creditor and try to negotiate a settlement. Often, creditors are willing to accept a lump-sum payment or a payment plan that’s more manageable than wage garnishment. Make sure to get any agreement in writing before paying.
3. File for Bankruptcy
If you’re overwhelmed by multiple debts, bankruptcy might be an option. Filing for bankruptcy triggers an automatic stay, which temporarily halts most wage garnishments. Depending on the type of bankruptcy (Chapter 7 or Chapter 13), you may be able to discharge or restructure the debt.
4. Challenge the Garnishment
If you believe the garnishment is unfair or incorrect, you can file a legal objection. For example, if the amount being garnished violates state or federal limits, or if you weren’t properly notified of the garnishment, you may have grounds to challenge it. Consult an attorney for help with this process.
5. Claim Exemptions
State laws allow certain exemptions that can reduce or stop garnishment. For instance, if you can prove that the garnishment is causing undue financial hardship, the court may reduce the amount or halt the garnishment altogether.
6. Work with a Tax Professional
If the garnishment is due to unpaid taxes, a tax resolution expert can help you negotiate with the IRS or state tax authorities. Options like an Offer in Compromise or installment agreement might reduce your tax debt and stop the garnishment.
Take Control of Your Financial Future
Wage garnishment can be a stressful experience, but it doesn’t have to define your financial future. While changing jobs won’t eliminate garnishment, there are actionable steps you can take to regain control. Whether it’s negotiating with creditors, claiming exemptions, or seeking professional help, the key is to act quickly and decisively.
If you’re dealing with wage garnishment and don’t know where to start, Top Tax Defenders is here to help. Our experienced team can guide you through the process and help you find the best solution for your situation. Contact us today for a free consultation and take the first step toward financial freedom!
