Can Wages be Garnished for Money Borrowed from a Friend?

There are certain situations in life that call for borrowing money from a family member or friend: if your financial situation is less-than-optimal, and if your credit score is poor. When you’ve exhausted all traditional lenders and “bad credit” lenders, your Hail Mary may be asking someone you know to lend you money.

In these situations, most people make grandiose promises to pay the money back (sometimes with interest). Out of sheer gratitude, it can be easy to make promises you’ll never be able to fulfill. On rare occasions, the friend or family member (especially if it’s one of your parents or grandparents) will wave you off if and when you try to pay them back. Note the use of the word “rare.”

The honest truth of the matter is that, unless they’re abundantly wealthy with cash flowing in faster than they can spend it, your personal lender is going to expect to be repaid the money that you borrowed from them. In all likelihood, they’ve probably dug into a savings account that was specifically earmarked for something important in their own life, like paying for a child’s college education or putting a down payment on a home, in order to help you out of a bind. Failure to repay this ultra-generous favor is frankly very uncool.

Just as you wouldn’t borrow money from a traditional lending company or banking institution if you had no means to pay back the loan (because they wouldn’t lend you the money if you didn’t qualify in the first place) – you shouldn’t take money from a friend or relative if you have a pretty solid hunch that repaying them isn’t in the cards.

What can happen to me if I never repay a debt I owe to a friend?

Just as any debt that you leave unpaid, the lender (in this case, your pal) has every right to collect the money from you. Naturally, most loans of the personal nature tend to start out with the lending party casually mentioning the money he’s owed. This may happen several or a multitude of times, depending on the nature and patience level of the person who loaned you the funds.

You can prevent straining your friend’s patience by making a plan to pay him back the very second his money hits your hand. After all, “it takes many good deeds to build a good reputation, and only one bad one to lose it.” Electing to borrow money from anyone and then ignoring their requests for repayment is a bad deed, indeed.

Your good-natured lending friend is likely to tire quickly of gently asking you for the money he’s owed, and personal relationships are bound to suffer the longer you fail to make good on your handshake agreement. What many people don’t know is that even personal loans between friends and family members can be enforced in the NJ court system.

What started out as a buddy helping a buddy out can end with a nasty court case wherein you’ll be sued for the money owed, and wages can be garnished from your paycheck if you don’t have enough money to satisfy the judgment straight away.

Save yourself the hassle and a relationship that you likely value: start repaying the money you borrowed, even if it’s a small amount at a time. Good faith often goes a long way, especially when life-long friendships are involved.

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