Payday Loans

A 3-Step Guide To Revoking Wage Garnishment For Payday Loans

When it comes to revoking wage garnishment for payday loans, there are plenty of things that you need to take into your careful consideration. When you fail to make the repayment on short-term cash advances in a timely manner, lenders have the right to file a civil lawsuit against you in the court and request a writ of garnishment. If such an order is passed by the court, your employer will be required to withhold a certain amount of money (as specified under the court order) from your paycheck and forward the same to the court. The lenders will then be paid by the court. However, the payday loan laws in the United States of America also provide you an array of legal options, which you can use to stop such troubles. Following is a brief 3-step guide on how to go about it.

Negotiating A Pay-Off Option

If you are looking out for ways for revoking wage garnishment for payday loans, you can start by contacting your lenders and negotiate a repayment plan so that you can affordably pay off the debts. However, in order to increase your chances of winning a good deal through such negotiations, you must be able to provide proofs for the financial hardship you claim you are going through. The wage garnishment can easily b stopped if you can manage to scrape enough funds to settle the debt. If your poor financial position does not allow you to settle the debt in full at once, you should consider negotiating an offer, as per which you will agree to satisfy the back payments provided the lenders agree to stop the garnishment.

Taking Another Loan To Pay Off The Existing Debts

In most cases, when you approach a payday lender with negotiation offers for revoking wage garnishment for payday loans, you are most likely to be offered a proposal to take another payday loan to pay off the existing debts. Be careful before you accept any such offer because it may eventually push you deeper into a viscous cycle of debt. If you must go for this option, it is always better to consider taking a new conventional loan, such as a personal loan or a home equity loan because this way you can easily transfer your multiple extremely high-rate loans to one low-rate loan.

Request The Court For Relief

Most states in the US these days have enacted stricter payday loan laws in an attempt to protect the rights and interest of the consumers. You have been provided certain legal rights under those laws, which you must be well aware of. For example, you have the right to file a motion with the court requesting for relief. You can consider filing a Claim of Exemption form in court for revoking wage garnishment for payday loans. In this form, you will be asked to provide the details of monthly expenses and the regular sources of income. Other information that you need to provide in this form include the details about your family members, such as how many of them are dependent on you, whether you are the head of the household, and other such things. Besides that, you also have to explain some valid reasons why your request for stopping garnishment should be considered.

Since the legal proceedings in this regard can be a little complicated, you may also have to consider hiring an attorney to assist you with the process. However, when it comes to revoking wage garnishment for payday loans, people often are not in such a good financial position to afford the fee charged by an attorney. If that is the case with you, an alternative way for you is to get free legal advice by contacting community legal clinics.


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