Website design By BotEap.comThe term wage garnishment is generally reserved for the IRS process of forcing an employer to withhold a certain portion of wages to satisfy some back taxes. This is usually accomplished by means of a short court order that is delivered to the debtor’s human resources/payroll department instructing them to withhold such wages. This can only be done legally after the creditor has filed a lawsuit against the debtor and has shown that they have not been able to reach a mutual agreement to pay the debt. Basically, this means that the burden of proving the debt is on the creditor and they must satisfy the court about it. That said, wage garnishment can be a surprise and a pain that further exasperates an already sour financial situation. Have you been subject to wage garnishment? Here’s how to get out.
Website design By BotEap.comIf your wages have recently been garnished, you are undoubtedly experiencing financial stress. This is because the garnishment can continue until a legal agreement is reached between you and the creditor. One of the most common reasons people’s wages are garnished in the first place is because they don’t pay taxes. This may be due to a deliberate attempt to circumvent or poor filing practices. Many people are in this bracket. This can be due to a number of factors, one of which is improper tax filing, either by doing it yourself or by hiring someone who is not qualified or trained. Then there are a host of unscrupulous tax preparers and will collide with a few to defraud the IRS on taxes who usually promise their clients unusually high tax refunds. So one of the best ways to avoid wage garnishment is to always file your taxes with reputable, qualified and licensed entities.
Website design By BotEap.comInstallation AgreementIf you have received a notice that you owe back taxes, you should contact the IRS immediately. First of all, this shows goodwill. Most wage garnishments wouldn’t happen if more people simply contacted the IRS once they knew they owed. Once you contact the IRS, ask if you can work out an installment and payment plan.
Website design By BotEap.comOffer in Compromise (OIC)Sometimes the taxes owed are simply too much for the person to pay. In that case, what is called an Offer in Compromise can be negotiated. This is a request to the IRS to reduce the amount of tax due and have you pay significantly less. The IRS can approve or deny this request.
Website design By BotEap.comdeclare bankruptcyIn the event that Chapter 7 or Chapter 13 is filed, the IRS can stop garnishment proceedings. This option should not be hastily exercised because filing for bankruptcy takes a toll on one’s credit. It is advisable to examine all other options before opting for this one.
Website design By BotEap.comfinancial difficultiesThere are cases where the person whose wages are garnished can show that this is punitive and will affect their ability to pay for essential services such as food, clothing, and housing. However, this determination has to be made by the IRS. If the IRS determines that the person cannot pay the wage garnishment, then they can be released from the entire process. However, the process can begin again if the person’s income increases in the future or if he or she is considered to be in a better financial situation.
