If debt collectors are calling you and sending you dunning letters about credit card debt, you need to know; they can sue you. If they win, they can garnish your wages! Correction, THEY WILL garnish your wages, that was the purpose of suing you!

Ignore outstanding credit card debt can turn into an expensive, painful and embarrassing lesson in life. Once that debt or debts is turned over to debt collections, there is a great potential that the collection agency will sue you. If they do and if they win, their next course of action will be: WAGE GARNISHMENT!

Although this is usually a last ditch effort at debt collection, many debt collectors are turning up the heat and filing as fast as they legally can.

When Credit Card Debt morphs into a wage garnishment scenario, it hits debtors where it hurts most: it impedes their ability to pay the bills, put food on the table, fill the gas tank and keep a roof over their heads. Yes, amassing debt can come back to bite you.

If you are wrestling with credit card debt, the best course of action is to act immediately, speak to creditors and try and reach some sort of revised payment arrangements and stick to that new repayment plan. Otherwise, and that debt remains unpaid and ignored, the courts may intervene by issuing a judgment against you requiring your employer to “garnish” or withhold a portion of your wages or property, forcing payment of that debt.

As you can imagine, having your paycheck garnished cannot only be financially damaging it can also be embarrassing. Your employer now becomes aware of their financial situation. Employers are typically required to tell workers about the withheld amount. Another issue that arises is, while it is against the law for an employer to fire an employee because their wages are garnished, that protection goes away after a second and third such judgment. If you are headed in that direction, the time to act is NOW!

Here’s how to defend yourself against a debt collection lawsuit.