Collection activity is frustrating for an organization that just wants payment for services rendered or goods delivered. While most consumers will do everything in their power to remain in good standing in re: their financial obligations, there are always some people who fall behind due to personal emergencies, poor planning or willful financial misconduct.
Businesses may find themselves trying to collect on a debt from someone who won’t take their calls, even after they have missed multiple payments. The Florida civil courts do offer several options for those who hope to compel another party into paying what they owe. Wage garnishment is one of the options available. Is taking someone to court to garnish their wages a worthwhile endeavor in the Sunshine State?
Garnishment may not always lead to payment
What someone actually earns will determine whether or not a company will likely recoup anything from a garnishment. Those who only work part-time and who make very little money may actually not have to worry about wage garnishment because of how little they earn. The limit depends on someone’s income.
A garnishment can cost someone up to 25% of their wages or however much their income exceeds 30 times the current minimum wage. It isn’t a choice, as the creditor will receive whichever amount is less. When someone earns less than 30 times the minimum wage in the average work week, then they may not be subject to garnishment at all because of their low income.
For those in professional positions and even those working full-time for minimum wage, garnishment can mean possibly hundreds of dollars each month directed towards a specific debt. For creditors, wage garnishment can be worthwhile so long as someone’s income is high enough to lead the courts to actually enforce the order.
The best collection options differ
There are options other than garnishment for pursuing collection activity against recalcitrant borrowers or debtors. Liens against personal property can sometimes be an option, and a wage garnishment lawsuit may be worthwhile if the person who owes money is currently without a job but could potentially command a competitive wage in the future.
Exploring every debt collection option and the viability of wage garnishment with the assistance of a legal professional can potentially help a company turn a collectible account into a settled one.