Working hard and earning income is what allows you to purchase all your needs and wants. However, it’s difficult to keep track of how much disposable income you have after all is said and done. That is why you are often left with more debt than you had planned on having.
On top of that, the sad truth is that not everyone pays their bills on time. If you are one of those who are stuck with a cost you can’t pay, you are going to want to figure out how to avoid wage garnishment. Continue reading to learn more.
What Is a Wage Garnishment?
A wage garnishment is the process of someone having their wages cut off or garnished from their finances at the moment their income comes. This means that you are getting a deduction taken out of your paycheck to pay off a cost you owe.
The amount that can be removed from your monthly paycheck for wage garnishment depends entirely on the laws of your state. Once a garnishment has been issued, you will typically receive a notice that it will be deducted from your compensation.
What Are the Effects of a Wage Garnishment?
A wage garnishment order will come with its own consequences. First, the amount taken out of your paycheck will go directly to the person or company you owe. This means you are going to have less disposable income each month to spend on yourself.
In addition, the person you owe will not stop the garnishment process until they receive their money. It is a good idea to get in touch with a tax professional who can help you come to an adequate payment plan that prevents wage garnishment.
What Are Some Kinds of Wage Garnishment?
There are many forms of wage garnishment depending on which parties you are indebted to. For instance, tax debt for the IRS can cause wage garnishment when you haven’t filed your taxes properly or if you’ve done it incorrectly.
Other common kinds of wage garnishment are child support and student loans. Past bills via owing money to someone for a product or service are also counted, as well as existing debt from loans or credit cards. Garnished funds go towards the parties you have to pay.
How Can You Stop a Wage Garnishment?
Unfortunately, you are not going to be able to do much to stop a wage garnishment. A protest can be filed, but you’re going to need solid evidence to prove why you deserve an exemption. The next best thing to do is to focus on prevention for your future finances.
It’s best to focus on the kind of wage garnishment you’re facing. If it’s tax debt, it’d be a good idea to get in touch with a tax professional to learn more about your situation, how to resolve it, and help you come to an agreement with the IRS.
Tax debt, child support, and credit card bills are just a few forms of wage garnishment you can face. It can be difficult to have your wages garnished, but there are ways to stop it and prevent it from happening again. Finding a tax professional to assist you is paramount.
Need to solve some other tax problems? Axiom Tax Resolution Group’s trusted tax professionals in Birmingham, AL, are ready to find a permanent solution to your tax problems with the IRS. Get in touch with us today!