My fiance had an Old US Bank credit card debt of 6-7K. They have filed a judgment against her and now wage garnishment are in action. She was told 25% of her pay every week would be taken out.
Everything was going well, she got promoted at work, called creditors to take care of some old debt and everything was looking good until this hit. She calculated everything together and the wage garnishment would make her unable to pay most of her bills, including rent.
What can we do here? I am unable to help her due to my own debt issues as much as I want to help. We tried to get a loan but due to our credit it was unsuccessful. She is so stressed out because she can’t find any help, no family to help. I feel really bad because I am already running 2 jobs to take care of my own debt and theres nothing I can do to help her.
Do You Have a Question You'd Like Steve to Answer? Click Here.
The most logical solution here is pretty straightforward. Since the one creditor went for the wage garnishment it is unlikely they are going to stop the wage garnishment. They already managed to reach into her income. You could try to negotiate an elimination of the wage garnishment with the creditor and see if there isn’t a more affordable payment they’d agree to. That’s an incredible long shot if they did all of that.
The more realistic solution is going to be for her to go for a legal and financial fresh start. Consider it a second chance. If she filed bankruptcy it would kill the wage garnishment and probably discharge her other debts within months.
Before you make any choice of what to do here I’d suggest you click here to find a local bankruptcy attorney and go meet with them. Find out what bankruptcy would mean for her in her situation. A bankruptcy forced by a wage garnishment is not an uncommon occurrence.
Please post your responses and follow-up messages to me on this in the comments section below.
Get Out of Debt Guy - Twitter , Facebook
If you have a credit or debt question you'd like to ask just use the online form .