If you have a large amount of debt that you cannot feasibly pay off yourself, then it may be time to start looking at bankruptcy options. Specifically, chapter 7 bankruptcy is the most common type of bankruptcy filed across the United States. If you are approved for chapter 7 bankruptcy, this means that you allow for some of your assets to be sold off and the proceeds used to pay off as much of your debt as possible.
One of the benefits of using Chapter 7 to file for bankruptcy is that you can discharge all of your unsecured debts once you have everything approved. However, forgetting to list every single unsecured debt on the bankruptcy filing paperwork can cause some big problems. If you do not list the debt, it won't be discharged. Keep these things in mind when compiling your debts.
The Debts To List
Your bankruptcy lawyer will help walk you through the process of listing debts, but it starts with you listing as many as you can.
Garnishing wages is a legal avenue that creditors, including some tax authorities, such as the Internal Revenue Service can use to force payment of some types of debt. In most cases, creditors are required to first work through the legal system by filing suit against their debtor and successfully obtaining a legal judgment against them.
Once this judgment has been obtained, the creditor is then allowed to take further collection efforts against the debtor, usually in the form of garnishing their wages.