Most people pay back what they owe on time, if not more quickly than an agreement they’ve made requires. After all, lengthy repayment will often mean paying more in interest and could drag down someone’s credit score.
Unfortunately, for every responsible credit user, there are some people who might have a very different approach to their financial obligations. Businesses pursuing a debt may struggle to communicate with a borrower or debtor. Even when they have a good address or phone number, the person may staunchly refuse to make payments.
People will blame personal circumstances or even inflation for not making their scheduled payments on their financial obligations. These excuses are often legitimate but sometimes they’re not. Regardless, businesses frequently need to take aggressive action to obtain repayment from those who fall behind on their accounts. Wage garnishment is a very useful tool for companies dealing with accounts in bad standing.
Wage garnishment takes the choice out of the matter
The problem with collecting on a debt is often that the person who owes the money has different priorities than the party trying to collect on the debt. They may spend money on numerous other desires or obligations instead of an account that has a past-due balance.
If a business brings a successful debt-related lawsuit and secures a judgment against a borrower or debtor, they no longer have to worry about missed payments. They will instead directly receive a certain amount of the debtor’s disposable income before they receive their weekly paychecks.
Florida law permits the garnishment of up to 25% of someone’s disposable wages or any pay beyond 30 hours of minimum wage compensation weekly, although state law does require that creditors accept the lower of the two amounts. Until someone repays what they owe, garnishment may be the most effective means of ensuring regular payments toward the balance due.
Going to court is a stressful process
Although the law generally supports the right of a creditor to demand repayment, possibly through wage garnishment, businesses are often reticent to take this crucial step. They worry about damaging their reputation or putting someone into a position of financial hardship.
It is important for executives and business owners to understand that wage garnishment laws protect people against true financial hardship by limiting how much creditors can claim per pay period. Making use of different debt collection rules, including wage garnishment options, can benefit those collecting debts in Florida, even if they are concerned about impacting the finances of any particular debtor in question.