Although you may have heard of stories where creditors and collection agencies garnish people’s wages, it does not happen before the proper legal process takes place. As the first step, the third party collector has to sue you. You must receive a formal written complaint via certified mail. Once you have acquired this complaint, you will have to submit a response within a specified time and describe why you are consenting to the lawsuit. If you go to court and intend to dispute the suit, a court will look for a specific reason that you were unable to pay the debt. Any specific story or hardship will make it more understandable as to why you avoided paying. Also, a court will look favorably upon you if you show that you have been trying pay, that you have been proactive, and that you have sought credit counseling or terms of agreement with your creditor.

Once you have a received the complaint and have decided to consent to it, a good course of action is to contact the creditor. Together, you can come to an agreement about how you will repay the debt. This way is beneficial for both parties, as it prevents the need of going to court and having expensive litigation fees.

If you fail to respond to the complaint, or if you do not appear in court after responding that you consent, it will result in a default judgment against you, indicating that you owe the disputed debt. If a court reaches such a judgment, be prepared to face more aggressive calling measures, and at this point, possibly garnishment of your assets. Each state has different guidelines, and it would be beneficial to you to be conscious of those that regulate your state’s laws on garnishment of wages.

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