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How does wage garnishment affect your credit report? Atlanta, GA

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How does wage garnishment affect your credit report?

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One of the main concerns that people have when they are behind on loan payments or have past-due credit card balances is how the situation will affect their credit scores down the road. In some cases borrowers can see a way out or have already begun proactively pursuing a solution like a loan modification before they have fallen into default, and in that situation the process may not have a major impact on someone’s credit score. 

In other situations, borrowers may hope that their finances will improve and may not take steps in advance to prevent a default, in which case lenders can seek a remedy in court and obtain permission to garnish wages. 

Wage garnishment can be a painful process because it may focus funds on a past-due debt that would be better spent keeping up with current needs like housing. Lenders who are seeking to garnish someone’s pay must go to court and at that time the borrower has a opportunity to defend themselves and argue against the garnishment. If they are not successful, the lender will have the right to take a part of someone’s paycheck even before it reaches the person earning it.

The upside, however, is that once the debt is settled it will appear that way on a credit report. This means that although it was once past-due, future potential lenders or landlords will be able to see that it was eventually paid in full, so the negative impact could be mitigated by the fact that the debt was satisfied. And, as many people already know, satisfied debts will no longer appear on a credit report after seven years. 

Source: Fox Business, “Debt Lingers on Credit Report Even After Garnishment, Repayment,” Jane McNamara, May 31, 2013.

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

Phone: (404) 685-8800

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Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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