3 Types of Debt that May Result in Wage Garnishment

Wage garnishment is something that many people are faced with every year. There are several different types of debt that could lead to eventual wage garnishment. Here are a few things that could lead to your paycheck's being garnished.

1. Student Loans

You cannot get rid of federal student loan debt even with bankruptcy. Many people who refuse to pay their student loans end up having their wages garnished as a result.

2. Back Taxes

If you owe the federal government tax money, there is a good chance that your wages could be garnished in order to repay the debt. Taxes are another thing that you cannot get out of under any circumstances. Therefore, if you refuse to pay your tax bill, the government could set up a wage garnishment for you.

3. Credit Cards

Credit card debt could eventually be garnished from your paycheck as well. For this to happen, the credit card company would need to have taken you to court and received a judgment in its favor. If you lose a lawsuit from a credit card company, a judge can decide to set up a repayment plan for you or garnish your wages. Therefore, it may take some time for this garnishment to take effect, but it can happen.

Ref : www.loan.com