- 1). Stop borrowing money, including the use of credit cards. Write out a weekly budget and stick to it. Remove all luxuries from your life. New tattoos, CDs or computer programs will just have to wait. Sell any unnecessary high-ticket items to raise cash. Wage garnishments are probably the result of an irresponsible spending pattern. If some creditors see that you are making a good-faith effort, some garnishments might be curtailed.
- 2). Contact your main creditors at once. Remember that they want their money more than anything else. They have already viewed you as a bad debt, and trying to change their mind is your best chance to stop garnishment. Tell them what you are doing to raise money to repay your debt and see what kind of deal you can make.
- 3). Contact a debt consolidator. You must change the way you spend, budget and prioritize. You will have to pay the consolidator out of the money you save, but getting all the money together at a lower interest rate will help you. A good debt firm will negotiate with your creditors for you. The very fact that your creditors see that you have contacted a consolidator will improve your chances of arranging a payment plan in lieu of garnishment.
- 4). Declare Chapter 11 bankruptcy if all else fails. This should always be the last resort. Your financial life will now be an open book to the court and the committee that your main creditors will now form to oversee your new financial life. If you have not declared bankruptcy before and have a regular source of income, Chapter 11 may be a viable option to garnishment. Chapter 11, a debt reconstruction, not liquidation program, forces your creditors, in union with the court, to discharge much debt, with the exception of child support and fines, in exchange for a reorganization and restructuring of your finances. This will destroy your credit, but it is a way out of crushing debt. Look into all other options before filing for Chapter 11.
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