For more than 25 years the writer has been helping hundreds of couples and individuals with financial difficulties. Many of them whose wages were already garnished by creditors for they ignored creditors’ collection demand letters including Plaintiff’s (Creditor’s) Claim already filed in court. The consequences were default judgments, garnishment of wages, bank accounts and attachment of properties.
If you are in financial difficulty and you cannot see a solution of your financial problem within a short period of time, do not procrastinate. You need to be proactive.
That is if your income is not enough to pay your outstanding debts already due or you cannot secure a loan to consolidate your debts to improve cash-flow, you need to explore alternative solutions other than the conventional approach of borrowing from a bank.
Some alternative solutions to financial problems are settlement of debts (debt negotiation), credit counseling, consumer proposal, proper budgeting, liquidation of assets, and bankruptcy as last resort. To guide you for the best alternative solution to your financial situation, seek an assistance of an expert in Debt Solutions.
When you receive demand letters from your creditors you have to read them and do not throw them away to the garbage. For these demand letters need your immediate action.
Demand letters are part of the collection process before creditors would go to court. Once your creditors sue you in court for non-payment of your debts, creditors would demand payment of: the principal amount owing, interest in arrears, legal fees and disbursements.
With legal fees and disbursements are added to the principal amount owing, the more you cannot pay a judgment amount, and a consequence is garnishment of your wages will soon follow.
When your wages are garnished it would be embarrassing, for your employer would know that you are in financial trouble for your employer would be served of the garnishment order by the court.
To avoid garnishment of your wages it would be prudent for you to be proactive as above mentioned, for it also ward off the embarrassment it would cause you, for your employer would know of your financial problem including some of your co-workers particularly those who handle company’s payroll.