An Ounce of Prevention
Prior to wages being garnished, a debtor has the right to be notified at least thirty days in advance. Regardless of the type of garnishment - child support, taxes, defaulted student loans or other debts - there would be a garnishment notification sent to the debtor. For those who are facing wage garnishment, one of their first questions on receiving the notification is how can you stop a federal wage garnishment. Here are some options:
Contact the agency - Whether the wage garnishment is due to taxes owed or defaulted student loans, it is imperative that the agency be contacted immediately. It may be possible to work out a payment plan, ask for a deferral or negotiate a settlement. Clearly this is one of the best options when facing wage garnishment.
Contact an attorney - Another possible option is to contact someone who is licensed to practice employment law. Since the wage garnishment laws are mandated by the Department of Labor, an attorney may help you decide what options are available to you.
File Bankruptcy - The least desirable option is to file bankruptcy. It is important to note that filing bankruptcy due to student loans or taxes owed will not discharge these debts, regardless of the type of bankruptcy filed. However, filing a Chapter 13 bankruptcy can allow the debtor to set up a reasonable payment plan that is easier managed than allowing the wage garnishment.