I Have a Voluntary Wage Assignment. What Can I Do?
Posted on Jun 11, 2014 in Bankruptcy
Your creditors can’t simply take money out of your paycheck just because they feel like it. They need a reason, and there are only a few reasons these companies can do that. One of those reasons is a judgment from a court that rules the debt is valid and that a wage garnishment is allowed. The second reason is that you agree to it. A voluntary wage assignment is one of those agreements where you sign a contract that allows the creditor to take funds from your paycheck by sending a request to your job’s payroll.
We don’t recommend you ever agree to this, because this takes your money and allows them to be paid even if you can’t afford it and you fall behind in other debt. But if you fall behind in your payments on a loan and a company sends a notice to your employer and to you to trigger the wage assignment, here’s a few things you need to know:
1. A bankruptcy will eliminate the debt and prevent the lender from using a wage assignment to take your money.
2. You can revoke a wage assignment because it’s voluntary. There’s no such thing as slavery or voluntary servitude allowed anymore. But to stop a company from taking your hard earned money, you should always send a letter by certified or registered mail to the company and keep a copy for yourself to get to payroll.
3. If you do stop the wage assignment, prepare for a lawsuit to collect the money from you and force a wage garnishment.
If you’re in trouble and have a voluntary wage assignment threatening your pay, please call us at Lakelaw to discuss how to help you out.