In some cases, when a debtor will not pay back what is due to another party, a court order has to be issued requiring them to pay. Even this can sometimes still make it difficult for the other party to actually collect. In these cases, the court can order that the person’s wages be garnished.
Wage garnishment is effective, in part, because the money is withheld by that individual’s employer. The debtor themselves is not required to make these periodic payments. Instead, a portion of their wages is removed from their income before they receive it, and it is then rerouted to the creditor.
It can still be a lengthy process
This does mean that it can take time. The debtor is not paying back the entire amount that is owed all at once. Wage garnishment levels will be based on numerous factors, including how much that person earns and how much money is available. They may be paying back just a small percentage with every paycheck.
This can still work over time because it removes any potential issues with failure to pay in the future. If the person was just ordered to write a check to a trustee every month, for example, there is always the chance that they would fail to do so and further legal issues would ensue. However, if the money is removed from that person’s possession so that they never receive it in the first place, they do not have any say in whether or not it is used to satisfy the debt. This helps to provide a consistent source of payment.
Wage garnishment cannot be used in all cases and may not always be appropriate, but it can be a valuable tool. It is important for creditors and small business owners to understand what legal options they have to collect what is owed to them.
