Creditors can use various methods to collect on a debt. One of the most effective collection methods is wage garnishment. By garnishing a debtor's wages, the creditor does not have to be concerned with the debtor's willingness to send payments or pay the debt in full. The money is simply taken directly out of the debtor's paychecks. Typically, a lender will not resort to wage garnishment until other collection methods have failed and the debtor has demonstrated an unwillingness to pay.

If a creditor threatens to garnish wages, often a debtor feels little can be done to prevent it. Working out a payment plan is one way to convince the creditor to refrain from garnishing wages.

Filing for bankruptcy is another option a debtor has to take control of debt. Filing for bankruptcy will also immediately stop wage garnishment and will completely prevent the creditor from garnishing a debtor's wages.

Wage Garnishment, the Best Option for Creditors?

According to a recent study, states that do not allow or put drastic limitations on a creditor's ability to garnish the wages of debtors have lower rates bankruptcy filings; 42 percent lower according to the study. A debtor may be less likely to collect on a debt if a debtor files for bankruptcy.

However, the current economic recession has put creditors in the position of actively pursuing wage garnishment as a method of collecting on the debt owed. The recession has made it harder for debtors to repay debts and wage garnishment puts a creditor in first position to collect on a debt when there are multiple creditors.

If you are in debt and being threatened with wage garnishment contact an experienced California bankruptcy attorney. An experienced bankruptcy attorney can help you understand all of your options to prevent wage garnishment and other collection efforts while helping you understand your options for taking control of your debt.