Wage Garnishment alternative

I have a wage garnishment notice, went to court, filled out an order to show cause that i just could not afford the amount they were going to take, rent, taking care of elderly mother, transportation costs to and from work as I have no car, other bills, food. Judge would not sign off on it. Can I still attempt to negotiate with collection agency for a lump sum? Thank you.....Sum is $1,800, of course so much of that is interest and legal fees.

Comments for Wage Garnishment alternative

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Oct 19, 2010
Negotiating a debt
by: Gerri

Most debts are negotiable, even when the creditor has obtained a judgment. That's because it's so difficult for creditors to collect even on judgment debts. However, the difficulty you may have at this point is coming up with enough money to settle the debt for an amount the collector will accept. It's certainly worth a try.

If you do decide to go this route, make sure you get something in writing from the judgement creditor that states that the amount you are paying will settle the debt in full.

Also keep in mind that if the creditor forgives $600 or more, it may be required to report that forgiven amount as taxable income to the IRS. A tax advisor may be able to help you avoid paying taxes on that forgiven debt.

We hope you are able to find a resolution to this problem.

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