#WageGarnishment #1099Gig #UnderTheTableIncome #QuittingJob
So, you’ve been hit with a wage garnishment and you’re considering quitting your job to avoid it. Maybe you’re thinking about picking up some under-the-table work or a 1099 gig to make some money without having your wages garnished. But before you make any drastic decisions, it’s important to understand the potential consequences and implications of such actions.
First of all, let’s break down what wage garnishment is and how it works. Wage garnishment is a legal process in which a portion of your earnings is withheld by your employer to fulfill a debt that you owe. This could be for unpaid taxes, child support, student loans, or other types of debts that you owe. The court orders your employer to deduct a certain amount from each paycheck and send it directly to the creditor until the debt is paid off.
Now, let’s explore what happens if you decide to quit your job and make money via a 1099 gig or an under-the-table gig somewhere.
##Can they make you be employed?
The short answer is yes, the court can make you be employed. When you’re hit with a wage garnishment, the court expects you to make every effort to continue earning an income and paying off your debts. If you decide to quit your job and pursue other forms of income, the court could view this as an attempt to evade your debt obligations. This could lead to serious repercussions, including additional legal actions against you.
##The Consequences of Quitting Your Job
If you decide to quit your job to avoid wage garnishment and start making money through other means, you could potentially face the following consequences:
1. **Legal Action**: Quitting your job to avoid wage garnishment can be viewed as an act of bad faith and an attempt to evade your debt obligations. This could lead to the creditor taking further legal action against you, such as obtaining a judgment against you for the remaining balance of the debt or even pursuing criminal charges for fraud.
2. **Increased Debt**: If you’re not making regular income from a traditional job, you may find it more difficult to meet your living expenses and make regular payments towards your debt. This could lead to the debt continuing to grow and accumulate interest, putting you in an even worse financial situation in the long run.
3. **Damage to Your Credit**: Evading debt obligations and facing legal consequences can have a significant impact on your credit score and overall financial health. It could make it more difficult for you to access credit in the future and seriously damage your financial reputation.
##Alternative Solutions
Instead of resorting to drastic measures like quitting your job to avoid wage garnishment, there are alternative solutions that can help you manage your debt more effectively and responsibly. Some options to consider include:
1. **Negotiating with the Creditor**: You can try to negotiate with the creditor to establish a payment plan that is more manageable for your financial situation. This could involve lower monthly payments, reduced interest rates, or even a lump sum settlement.
2. **Seeking Legal Advice**: It’s always a good idea to consult with a legal professional who specializes in debt and wage garnishment. They can provide you with expert guidance and help you understand your rights and options for dealing with the situation.
3. **Exploring Other Income Opportunities**: Instead of quitting your job, consider exploring other income opportunities that could help you supplement your earnings and manage your debt. This could include taking on a part-time job, freelancing, or pursuing entrepreneurial ventures.
##Conclusion
In conclusion, while it may be tempting to quit your job to avoid wage garnishment and pursue other forms of income, it’s important to understand the potential consequences and the impact it could have on your financial and legal situation. Instead, consider exploring alternative solutions and seeking professional advice to manage your debt more effectively and responsibly. Remember, evading debt obligations can lead to serious legal and financial repercussions, so it’s better to address the issue head-on and explore viable solutions.
if they can prove you’re still employed somehow, they make you pay or you goto jail
This is considered hiding money from the court and they get pretty mad about it. My dad tried it and they took every tax return he got for like 10 years.
I can only answer for the US because I think debtors prison is still a thing in some countries but in the US you cannot go to jail over civil debt. If a creditor has a judgement against you, they can also levy your bank account and in some cases take your property and sell it but this is generally only if it’s a business who owes the money since most personal property is exempt.
If you are an independent contractor (1099) the party you owe the money to can serve your customer with a demand to take a % of your pay and divert it to them, but in practice this isn’t that common. Most wage garnishments are from employers.
Now child support is a little different. If you refuse to work, a Judge can send you to jail for that but that’s the last resort. They can also take away your driver’s license as punishment for not working to at least try and pay some child support.
They can come after your assets like your house, car, securities, etc. If it got to that stage and the amount of money in question were substantial enough, they would begin investigation into where you are getting your money, whether you’re paying taxes, etc. In the United States, you cannot be jailed for debt. You can be for fraud, tax evasion, and hiding income.
Back to court you go
They can’t garnish self wages. I work in student loan recovery, and having a person quit a job over a wage garnishment was not common but definitely not unheard of.
Your phrasing is a bit off. “Sentencing” is applied during criminal trials but garnishing wages is typically a civil procedure enforcement mechanism.
TYpically, if you dont pay a civil judgement and are suspected of receiving money from other sources, the court can subpoena your bank records. Unless you are keeping your money under your pillow your bank account will reflect numerous deposits on a regular basis. Your bank balance can also be attached, as can your personal property. The lasr one is typically an option of last resort as most goods are auctioned off at a mere fraction of their original price.
Not reporting earnings and tax evasion is illegal.
Presumably whoever is owed the money would notice that they weren’t getting payments and either they or the court would follow up to determine how you are supporting yourself financially and why you aren’t making payments.
In some jdx they g’o off of what you are “capable of earning” and you will be attributed full time minimum wage no matter what (unless there are extenuating circumstances like full disability and others). Also, just because you stop paying doesn’t mean child support arrearages do not keep accruing. The other party can get a judgment against you and they normally have all civil remedies at their disposal.
ALSO, if you move to modify the child support because you “lost” your job, the court can order your bank records and credit card statementss disclosed (in some jdxs this is mandatory) so see what money you are making. it is VERY difficult to hide assets these days.
As a debt collector, I always looked for your bank account because that can be garnished too. When I collected on judgments, I did all I could to find all of your assets and attach everything I could. I’ve even put a lein on a herd of cattle once. I would absolutely hit your bank account every 3 months or so until you are paid in full.
They’d still find a way to get it. There’s no way to really get around that.
I own a company and we have won judgements against customers who have had their wages garnished. In one incident he did just as you are suggesting. For that first year he got by with paying nothing, he then had to set up a structured payment plan via the court system that had the amounts and terms agreed to by both sides.
If it’s not a huge amount you can maybe get by with it if whoever you owe it to doesn’t say or do a anything when you switch to being self employed, but being self employed if you showed profit you would likely have to pay from that. I doubt it would be worth quitting a job and trying to never show a profit again over not repaying a debt.
Just set up payments you can afford and pay then all the time every time. They won’t go away unless you agree to a lesser amount buy off instead of payments.
They can file garnishment against your bank account, tax returns as well as putting liens on your property (if you have assets etc.)
Having your wages garnished isn’t a “sentence”. If your deemed responsible for a debt or damages, the suing party simply petitions the court to garnish your wages to collect their money.
Once you have a garnishment against you it never just goes away. Your best bet is to just get through it. Contact the court and request they take a smaller percentage per pay period.
They will hunt you down like a rabid dog and take even more money. If you want to really piss off the court, go for it. They can and will throw you in jail, as I understand it, if you refuse to pay.
They will follow you
1099 workers get their bank accounts garnished instead.
And there are often no limits on how much they can take.
If you cash all your checks at Walmart and never deposit them, your mostly Teflon.
Getting paid under the table would open you up to tax fraud. Not often noticed, unless it’s put under a spotlight by your debt.
“They” don’t do anything. The courts that is, until YOU the plaintiff who is owed money, go back to court and pay to file a new complaint or however many forms are needed to get it done. New complaint, new summons service, new hearing for ability to pay, new hearing for payment plan ..rinse and repeat.
Courts may find the defendant guilty of contempt (at your insistence) but that’s not going to get your money back any sooner. To me, the courts just want you to give up and go away. They have other stuff to do. Do the legwork yourself: track down the defendant and his employers to serve notices. Attend all hearings.
And if you’re the one being garnished, for heaven’s sake, know what you owe and keep track of it, because neither the court or employer do. Once I sent an overpayment back to an employer but have no idea if it was returned to the employee/garnishee. The potential for fraud is wide open.
The you get garnished in prison lol.
They will take it from your tax return
you obviously shouldn’t test any branch of the government, but you DEFINITELY don’t want to test the tax man. best case scenario they take your tax returns or garnish your bank account or put liens on you.
worst case they garnish the $.40 an hour you make when they send you to prison.
Contempt at best
1099 wages “should” be reported on taxes. its your job as a [1099](https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee) to with hold taxes. IT is also your job to provide documentation at tax time, just how much you earned that year, where you earned it and have proof that what you are declaring are indeed all wages earned in that tax year. I’ve worked enough 1099 jobs to know that being a 1099, is the quickest way to an audit. if something seems sketchy to them. They will audit you. Been down that road WAY to many times.
Your balls grow 2 sizes.
Prepare to be audited. Especially this administration. They wanna come after girls making $600 on Etsy, you think they’re gonna let your taxes slide? And once you pay taxes, you get GARNISHED.