wage-garnishment

Actually, wage levy and wage garnishment are almost the same thing. One who initiates the levy or garnishment will inform your employer about the actions. Your employer will then withhold a portion of your earnings and that money will be used to repay your debts.

Wage levy is usually applied by the government like tax levies, conscription levies etc. And wage garnishment is applied by the regular creditors. They are not a part of the government bodies.

Regardless of what it is called, its effects are the same. The employer is required to honor the court-ordered garnishment and deduct the mentioned amount from your paycheck.

In case of wage garnishment, the creditors is first required to file a case at the court and get the legal rights to garnish your wages. In case of wage levies, the government does not need any permission from the court. They can execute any form of legal actions on their own administrative authority.

Many times, people ignore these court notices of wage levies or wage garnishment in the belief that they are nothing more than threats. The government may be sometimes slow in taking actions due to the cyclical nature of tax collection, but there is no escape from them. They will definitely come after you. They cannot accept the fact that one person getting away without paying taxes while others are complying to the laws.

Many times, collection agencies are hired to collect the debts. If you have received many letters or collection notices threatening legal actions and no actions have been taken till date, you must be thinking that this is nothing to be serious about. If the matter is gone to the court, it costs a lot of money with all the court costs and attorney fees. First, a judgment is issued after the debt is found to be valid, followed by a garnishment enforcement order. Just so that the matter does not end up going to the court, they will try to scare you so that you make payment arrangements with them.

Wage garnishment is a legal action and the only way to eliminate it is through a legally binding debt solution. These are personal bankruptcy, consumer proposal and an orderly payment of debts.

A licensed bankruptcy trustee will help you in filing for bankruptcies and making proposals to the creditors. Orderly Payment of Debts is only available through a government approved non-profit credit counselor.

If you are in the risk of getting garnished or in the danger of an impending wage levy, contact a licensed bankruptcy trustee at the earliest. He will figure out the best solution and guide you towards a credit counselor if your best choice is an Orderly Payment of Debts.

More about Wage Garnishment :  http://www.dol.gov/compliance/guide/garnish.htm
More about Wage Levy :  http://www.irs.gov/businesses/small/article/0,,id=108341,00.html