George hasn't paid Flip what he owes him. In an effort to recover the loan, George sues Flip. George requests that the court direct Home Bank, where Flip has an account, to pay George a portion of the money. An order of garnishment is being requested here.
How Does Wage Garnishment Affect My Credit Score?
- The harm has mostly been done from the standpoint of credit. Your credit may have taken a hit because you missed payments on one or more obligations, but the missing payments were the reason for the hit as it is likely that your wages are being withheld as a result.
- The fact that an old obligation—whether it be a credit debt or a tax liability—is being settled through a garnishment often doesn't appear on most credit reports.
- The delinquency of the loan and the existence of a judgment against you for the outstanding balance do appear.
- The delinquent and the judgment will eventually disappear from your report after seven years, just like most other negative items on your credit history.
- You are powerless to hurried that procedure along. That judgment, whether paid or unpaid, will be there for the whole seven years and, regrettably, it will have a negative effect on your score up until then.
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