If a Tennessee resident has considerable debt, he or she is not alone. Many individuals across the country are affected by mounting credit card debt and other financial issues that can make their lives more difficult. In some situations, individuals may even be targeted for wage garnishment that leads to them losing part of their paycheck to creditors who are collecting for outstanding balances.
The federal limit that a creditor can take out of a person’s paycheck is 25 percent. Luckily for Tennessee residents, state laws work to protect more of their wages, though it was not specifically reported what percentage is protected. However, for many parties, any percentage is too much as they likely rely on their paychecks more heavily than individuals without as much outstanding debt.
Debts relating to credit cards, medical bills or even student loans could lead to individuals potentially having their wages garnished. Of course, an ideal way to avoid such situations is to pay off debts. Unfortunately, many individuals may not have the necessary funds to pay off their debts entirely, and if their paychecks are being reduced by creditors, they may face even bigger financial issues.
Credit card debt and other balances can be stressful for individuals to handle, and if they begin to have their wages docked, they may feel that they are doomed to an endless cycle of financial problems. Fortunately, bankruptcy and other debt management options could help Tennessee residents regain financial control. By assessing their specific circumstances, parties may be able to determine which relief methods may be most beneficial for them.
Source: NPR, “Millions Of Americans’ Wages Seized Over Credit Card And Medical Debt“, Chris Arnold and Paul Kiel, Sept. 15, 2014