Did you know that the IRS can garnish your wages if you owe them money? It’s true. If you’re one of the unfortunate few who find yourself in this situation, it can be a real shock. wage garnishments can happen without warning and leave you scrambling to figure out how to make ends meet.
Fortunately, there are options available to help you deal with wage garnishments and get your finances back on track. In this blog post, we’ll take a look at what wage garnishments are and how to deal with them if they happen to you.
What Are Wage Garnishments?
Wage garnishments are when the IRS or other creditors take money directly out of your paycheck to pay off debts that you owe. They can be a real financial burden, especially if you’re already struggling to make ends meet. Depending on the amount of money that is taken out, wage garnishments can make it very difficult to cover basic living expenses like rent, food, and utilities.
How Do Wage Garnishments Happen?
Wage garnishments usually happen after you’ve been notified by the IRS or other creditors that you owe money. The first step is usually a notice in the mail telling you how much money you owe and giving you a chance to pay it back or negotiate a payment plan. If you don’t take action at this point, the next step is usually a phone call or letter from a collections agency demanding payment.
At this point, you still have options available to avoid wage garnishments. You can negotiate a payment plan with the IRS or other creditors, or even set up an automatic payment plan so that you don’t have to worry about missing a payment. However, if you don’t take action and continue to ignore your debt, the next step is usually wage garnishments.
How Can I Stop Wage Garnishments?
If wage garnishments have already started, there are still some things that you can do to stop them. The first step is to contact the IRS or other creditor and explain your financial situation. You may be able to negotiate a lower monthly payment or even get the debt forgiven entirely if you can prove that making payments would cause undue hardship.
Another option is to file for bankruptcy. This will stop all collection activity against you, including wage garnishments, until your bankruptcy case is resolved. However, it’s important to note that filing for bankruptcy should only be considered as a last resort because it will have a major impact on your credit score and make it difficult to get loans in the future.
Wage garnishments can be a real financial burden, but there are options available to help you deal with them. If you find yourself in this situation, the best thing to do is contact the IRS or other creditor immediately and explain your financial situation. You may be able to negotiate a lower monthly payment or even get the debt forgiven entirely if you can prove that making payments would cause undue hardship. However, ifwage garnishments have already started, filing for bankruptcy may be your best option.
If your looking with help with a current wage garneshment, feel free to reach out to our team at 909-570-1103
You can learn more about our team at http://TaxDebtConsultant.com
Carlos Samaniego, EA
Enrolled Agent
