Garnishments

[mamab]

If you have to default on a business loan, they will often garnish your wages to obtain the money you owe. What is the process for garnishments?

[SageMother]

Quote:

Originally Posted by mamab

If you have to default on a business loan, they will often garnish your wages to obtain the money you owe. What is the process for garnishments?

Let me think back to when I was a debt collector...that was 25 years ago but here's what used to happen.

First you are taken to court by the creditor after they have investigated your assets. If you don't have a way to settle before you are standing in front of the judge, an order of garnishment can be entered. The order is served to your employer and / or bank. The creditor could take up to 1/4 of each paycheck, and I can't remember how the bank garnishments are handled.

There was a time when employers could fire you if your wages were garnished but I am not sure that is true any longer, or if it is true in all cases.

If someone can fill in where I have been wanting, please do so. I am peicing things together from something I did 25 years ago.

[Melizzy]

Employers can no longer fire you for garnishment. It has become the commonplace way to collect child support. I'm not sure that a business loan can be garnished. Only legal actions or judgments.

[aquariancore]

The laws have changed again and while it protects the consumer they can still ruin your credit whether or not it is just.

[Melizzy]

Oh yeah. Anytime you default on a loan, any type of loan, it screws with your credit rating. But she was asking iof they could garnish your wages. They can't for defaulting on a business loan.