As I’ve written before, by the time a creditor has started garnishing your paycheck, your options are limited.
You might be able to convince them to drop the garnishment in return for regular payments, but I haven’t seen that happen yet. And when I was working on the other side of things, none of my clients would agree to drop someone’s garnishment. From their perspective, it didn’t make sense. The customer had stopped paying before. Why should they believe that they’ll make payments now?
One other option is to see if they will settle with you for a lump sum. Of course, that means you have to have the chunk of cash to pay them off. Not a great option for someone who hasn’t been able to pay his bills, but you might be able to get a loan from a family member.
But, really, the only real option is filing bankruptcy. The second your bankruptcy attorney files your bankruptcy petition, that creditor has to stop all collection activity, including garnishment. That’s the power of the protective order that automatically enters in a bankruptcy case.
The bad news is that that money is probably gone. The trustee might ask for it back, but he’s only going to distribute it to the rest of your creditors. The good news is that you get your entire paycheck once your petition has been filed.
If your check is being garnished, consider talking to a Colorado bankruptcy attorney about how to stop it. Our consultations are free and require no-obligation to hire us. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.