Garnishment bonds can help borrowers prevent their wages from being garnished. Are you looking to learn how to use garnishment bonds? You’ve come to the right place. Today we are talking about garnishment surety bonds and how they can be used to help you protect your bank account.
If you have questions about other types of surety bonds please send us a message. Or if you want to skip the questions and contact a surety bond expert to start the application process, we invite that, as well.
Student loans are back in the news as borrowers prepare for Covid-era provisions that halted payments to end. Nationwide families are making the decision between paying rent and buying groceries. It’s legal for individuals and companies who are owed money to have the recourse to garnish wages to recoup what’s owed - pending that the action is approved by a local court. But they need to protect the person being garnished, too.
One lesson graduates learn is that if they do not pay their student loans, their wages will be garnished. For loan providers the health of the economy is secondary, loan payments must be made as scheduled to avoid default. Loan providers can garnish wages, assets, or bank accounts while the matter is settled. Because of the strain garnishments can cause to a person’s financial stability, states mandate the plaintiff take out a garnishment bond to protect the defendant from a financial loss.
An unpaid student loan is just one area of default happening to people daily. Back payments on mortgages, payment on furniture, failure to pay child support, and even car notes can lead to garnishments.
The garnishment bond covers the amount sought, as well as giving the defendant financial recourse in the event the court rules in their favor. Garnishment bonds are mandated by courts if the plaintiff wishes to garnish the defendant's accounts before a judgment is made. This surety bond cannot be waived.
The final garnishment bond cost is determined by the court, but is typically worth double the garnishment amount. The surety bond amount is also based on court cost that may be accrued during the period of garnishment.
Working with a reputable company to secure a garnishment bond is the best way to go. And if you’re being garnished, be sure to ask if the other party has taken out a garnishment surety bond as required. Knowledge is power.
Jurisco is a nationwide surety bond company that specializes in plaintiff bonds, defendant bonds, probate and fiduciary bonds, and license and permit bonds. Have questions about a garnishment bond? Contact the lawyer-trained staff at Jurisco today.