When you look at your bank accounts and discover that you weren’t paid your full wages, it can be concerning. However, before you accuse your employer of wage theft, it’s important to consider your outstanding debts and if creditors have taken action against you. As such, this could be wage garnishment. If your wages are being garnished, it’s important to understand what this is and whether or not it will impact your credit score. Additionally, if you believe there has been an error, you should connect with a San Diego consumer lawyer as soon as possible for additional assistance.
What Is Wage Garnishment?
When you are in debt and a collector has continually tried to receive reimbursement to no avail, they may elevate the matter to recover their funds. This includes pursuing wage garnishment. When your wages are garnished, it essentially means that a creditor has petitioned the court to withhold a portion of your earnings to send to the creditor as a means of paying them the debt they owe. Your employer legally must comply with any wage garnishments taken out against you.
In some instances, depending on the kind of debt you are in, a court order is not necessary. While private creditors like banks or debt collection agencies must take this route, public creditors can pursue garnishment without petitioning the courts.
Creditors cannot take all of your paychecks, however. They are limited to 25% of your disposable earnings after the mandatory deductions have come out of your check.
What Impact Does This Have on My Credit Score?
It’s important to understand that wage garnishment does not appear on your credit. As such, your potential lenders will not see that you are currently having money removed from your wages. However, the issues that lead to the garnishment will appear on your report. This includes any missed payments, delinquent accounts, or defaults on debt. These will have a significant impact on your credit score and can make finding lenders and housing incredibly difficult.
In some instances, you may find the garnishment you are enduring is unwarranted or unlawful. This can occur if a private collector fails to go through the correct legal channels or garnishes exempt income. If this occurs, connecting with an experienced attorney is even more imperative, as you’ll want to stop the unlawful garnishment and recover the funds taken from your wages.
If your wags are being unfairly garnished, it’s important to understand your legal options, as it may have an impact on your credit score. As such, the team at Barthel Legal is ready to assist you through these complicated matters to fight for your rights as a consumer. When you need assistance, our firm is here. Connect with us today to learn how we can fight for you.
