Stop Wage Garnishment
Wage garnishment can feel like a financial straitjacket, limiting your ability to manage day-to-day expenses.
You might have debts such as car payments, mortgage debt, or credit card debt. It’s your responsibility to pay these off on time. Although keeping up with these payments can be difficult and unenjoyable, there are consequences for not paying your debts. One of these consequences is the potential for wage garnishment.
Discover more about wage garnishment, why it occurs, and how to stop an IRS garnishment.
What is Wage Garnishment?
If you owe money to the IRS, one method they use to collect unpaid debt is wage garnishment. This involves seizing a portion of your wages to reduce the debt amount. Your wages could be garnished for various reasons, such as unpaid private debts, child support, student loans, and local, state, or federal taxes.
What am I getting this?
Leaving an IRS debt unpaid for too long can lead to serious consequences, one of which is wage garnishment. The IRS can forcibly collect unpaid tax debt through wage garnishment, a levy action by the federal government. This process allows the IRS to lawfully collect any unpaid taxes without requiring a federal court ruling, unlike other collection agencies.
However, you won’t be taken by surprise if this happens. The IRS will provide ample notice and warning, informing you of your tax debts and the potential consequences of non-payment. To avoid wage garnishment, you must either negotiate a payment plan or pay the debt in full. Ignoring the IRS can lead to further actions, such as a tax lien against you or your business.
How to prevent Wage Garnishment?
The good news is that there are ways to stop wage garnishment. Generally speaking, you must address the issue directly and resolve the tax debt as soon as possible.
Pay Off the Tax Debt in Full: One option is to pay off the tax debt completely, including the principal amount, interest, and any penalties incurred. However, this might not be feasible if you don’t have sufficient funds, so you may need to explore other tax debt relief options.
Set up an Installment Agreement: If you can’t pay off your debts in full, consider a tax-relief program that allows you to pay your tax debts in installments over up to three years. You’ll need to make these payments monthly and on time. Although there will still be penalties and fees, they will decrease as you pay down your debt.
Negotiate with the IRS: Another way to stop wage garnishment is to negotiate with the IRS to pay less than what you owe. One program, called an Offer In Compromise, allows you to settle your debt for less than the total amount owed.
Declare Hardship: If you can’t afford to pay off your debt, you may qualify for tax hardship. This means you’ll be classified as “Currently Not Collectible,” preventing the IRS from collecting your debt temporarily. However, interest and penalties will continue to accrue, and the IRS will periodically review your financial situation to ensure you still qualify.
Declare Bankruptcy: Declaring bankruptcy can stop wage garnishment in some cases. A “stay” goes into effect immediately upon declaring bankruptcy, preventing wage garnishment. A bankruptcy court will review your debt to determine if it can be discharged. Note that this option is not viable for debts related to child support.
Seek Professional Tax Relief Help: Lastly, getting professional help can be crucial in stopping wage garnishment. A tax relief team can provide sound advice and assist with filing taxes or addressing back taxes. Schedule an appointment by phone or email to get the assistance you need and keep the IRS out of your life.
Priority Tax Relief stands out for several reasons:
1. Expertise and Experience
Our team comprises tax professionals and financial experts who possess extensive knowledge and experience in dealing with wage garnishment cases.
2. Personalized Solutions
Our experts will work closely with you to develop a strategy that aligns with your financial goals and helps you prevent wage garnishment effectively.
3. Direct Communication and Negotiation
Our team will communicate directly with the creditor or the IRS on your behalf, actively negotiating a resolution to prevent wage garnishment.
4. Form 433-F, Collection Information Statement
We will guide you through the process of filling out Form 433-F, a Collection Information Statement. Provides detailed information about your financial status, helping to establish a reasonable payment plan or alternative resolution.
5. Expertise in Wage Garnishment Release
Our experts are well-versed in wage garnishment release procedures.
6. Ongoing Support and Guidance
Throughout the entire process, our team will keep you informed about the progress, answer your questions, and alleviate any concerns you may have.
Contact Priority Tax Relief at 888-708-2872 to learn more about Wage Garnishment and schedule a consultation.
Cancellation: Any cancellation of services must be made in writing and delivered to 400 S. Jefferson, Suite 100, Spokane, WA 99204 within three business days of the date of this agreement. If the client cancels services during this time, Company, reserves the right in its sole discretion to convert the agreed fee payment structure to an hourly one by which Client agrees to pay Company an hourly rate of five hundred fifty dollars an hour, entitling Client to a refund of up to fifty percent of all monies paid beyond the ten day money back guarantee in cases where no aggressive collection action is in place.
Frequently Asked Questions: Wage Garnishment
What is wage garnishment?
Wage garnishment is a legal process where a portion of your wages is withheld by your employer and sent directly to a creditor, such as the IRS, to satisfy a debt.
Why does wage garnishment happen?
Wage garnishment occurs when you owe money to creditors and have not paid your debt. Common reasons include unpaid taxes, child support, student loans, and other debts to private creditors.
How will I know if my wages are being garnished?
You will receive notice from the IRS or your creditor before wage garnishment begins. This notice will explain your debt and the garnishment process.
Can I stop wage garnishment?
Yes, there are several ways to stop wage garnishment, including paying off the debt in full, setting up an installment agreement, negotiating with the IRS, declaring hardship, or seeking professional tax relief help.
What is an Offer in Compromise?
An Offer in Compromise is a program that allows you to settle your tax debt for less than the full amount owed. You must meet specific criteria and negotiate with the IRS to qualify for this program.
What does "Currently Not Collectible" status mean?
“Currently Not Collectible” status means that the IRS has determined you cannot pay your tax debt due to financial hardship. This status temporarily halts collection efforts, but interest and penalties continue to accrue.
How does declaring bankruptcy affect wage garnishment?
Can private creditors garnish my wages without a court order?
No, private creditors must obtain a court order before they can garnish your wages. The IRS and other government agencies, however, can garnish wages without a court order.
How much of my wages can be garnished?
The amount that can be garnished varies depending on the type of debt and applicable laws. For federal tax debts, up to 25% of your disposable income can be garnished.
Where can I get help to stop wage garnishment?
You can seek professional tax relief help from a tax relief team or financial advisor such as Priority Tax Relief. They can provide guidance on your options and assist with negotiating payment plans or other solutions.