When someone owes your business money and fails to pay, it can lead to severe financial hardships. Recovering the debt is essential, and wage garnishment can be a powerful tool in meeting this goal.
In Florida, business owners can pursue wage garnishment to collect unpaid debts, but it is crucial to follow the correct legal procedures. Below is more information for Florida business owners seeking to collect unpaid bills.
Who can utilize wage garnishment?
In Florida, creditors who have obtained a court judgment against a debtor can seek wage garnishment. This includes business owners owed money for services rendered, unpaid loans or other forms of debt.
How does wage garnishment work?
The first step in starting the garnishment process is obtaining a court judgment against the debtor. Once the judgment is secured, creditors can file a motion for a writ of garnishment with the court. At this point, the court issues the writ, which is served on the debtor’s employer.
The employer is required to withhold a portion of the debtor’s wages and send it to the creditor (you) until the obligation is fulfilled.
Can debtors prevent wage garnishment?
There are a few ways a debtor can try to avoid having their wages garnished. These include:
- Negotiating a payment plan
- Paying off the debt in full before garnishment begins
- Successfully filing for bankruptcy
- Claiming certain exemptions, like head of household status
Consider working with someone who understands the nuances of Florida debt collections if you are facing unpaid business debt. They can help you anticipate potential hurdles and create a strategy to overcome them.