For the self employed individual, wage garnishment is just as serious a legal matter as it is for someone who is employed through a business entity. In any situation, the courts will determine if in fact an individual has not paid nor worked out a method of repayment of some debt and then apply a garnishment. A wage garnishment is a legally required payment made by an employer (in most situations) right out of the employee's paycheck to the creditor he or she owes. In self employment situations, the difference is only slight.
Self Employed Garnishments
For those who are self employed, the process of getting a wage garnishment is the same. The creditor you owe will take you to court to get a court ordered judgment against you. The court reviews the case and determines if you are legally responsible for repaying the debt. If so, the court will instruct the funds be paid to the creditor. Since there is no employer involved in this situation, the funds must instead come from the accounts receivable of the business itself.
The business must process the garnishment as it would any other debt. If not paid as ordered, the business assets may be seized after a period of time.
What You Can Do To Stop Garnishments
Most individuals will want to avoid allowing a creditor to remove funds from his or her business to repay a debt. In order to prevent this from occurring, consider the following solutions:
- When a creditor contacts you regarding a payment, do not avoid them. Speak with them, even if you do not have the funds to pay them. Specifically, state why and what you hope to offer them in the future.
- Make the payment if possible.
- Work out a repayment plan with the creditor directly. Even if it requires paying off the debt over a period of time, do so to avoid garnishments.
- Respond to letters and documentation sent to you properly.
- Do talk to the judge if the case does go to court. State why you have not paid the debt and what your plans of repayment are.
- Try to settle the debt for less than what is owed directly with the creditor.
The key is to act. Wage garnishment is likely to continue unless you offer the creditor some method of repaying the debt.
Get Legal Advice
If you feel that your rights have been violated, contact an attorney to help you. You also have the right to an attorney throughout the garnishment judgment hearing.
