Should I Quit My Job to Avoid Wage Garnishment?

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If you’ve recently discovered that a NJ lender to whom you are indebted plans to garnish your wages in order to recover some of your missed payments, it’s natural to feel scared and overwhelmed. How much of your paycheck can they legally garnish? Will your co-workers find out that your wages are being garnished? The fear of that embarrassment is what prompts some people in this situation to ask themselves if they should simply quit their job to avoid the wage garnishment.

Wage garnishment is a debt collection strategy utilized by some lenders when other debt recovery tactics have failed. If you, as a debtor, have not made good faith efforts to repay the money you owe to a particular lender, the lender can get a court order that will order your employer to pay a percentage of each of your paychecks to the lender.

Will quitting your job help you avoid wage garnishment? Well, yes! Wage garnishment only works if there are “wages” being paid for a lender to intercept. So, does that mean you’ve outsmarted the system?

You cannot outrun a debt by quitting your job. In fact, leaving a steady place of employment simply to dodge a creditor is foolish, as they will find new ways to extract the money from you, and it is impractical to think that you can remain unemployed until the 20 year statute of limitations on your lender’s judgement runs out.

Is there any way to stop a wage garnishment order while keeping my job?

Now you’re talking! Keeping your job is your best bet in this situation, because you do have other options. Need to get rid of a New Jersey debt that you can’t afford to pay? Priority number one is remaining employed. Check.

Next, it’s time to talk about filing for NJ bankruptcy. Maybe you don’t want to file for bankruptcy either; perhaps it feels like ‘giving up.’ You may not want anyone to find out that you filed for bankruptcy just as you were worried about people knowing your wages would be garnished.

GOOD NEWS: Bankruptcy today does not have the stigma it held a generation ago. Times have changed, many people have been through some difficult financial challenges in the past decade, and bankruptcy now looks like a pretty good option for a lot of people.

You’re not alone if you consider filing for bankruptcy. Many people have come to the realization that filing for bankruptcy is the best answer to settling their debts. Many New Jersey bankruptcy attorneys will not charge you a fee to consult with them – call and make an appointment to find out what your options are.

A chapter 7 bankruptcy will wipe your debts clean (with a few exceptions like child support and student loans). You’ll be left owing a significantly less amount of money as soon as your bankruptcy is discharged, giving you more money to pay your bills and live life with. You’ll be able to find your way back to a balanced financial situation and a bright financial future if you decide to file for NJ bankruptcy, and you won’t have to try to out-run your creditors.

Image credit: Christie Parker

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