What Is A Voluntary Wage Assignment?

Home English FAQs Collections-Creditors Rights Nebraska

What Is A Voluntary Wage Assignment?

A voluntary wage assignment is a written contract in which the debtor agrees that a certain amount will be deducted from their paycheck to pay the creditor. Because it is voluntary, it is different from a garnishment. Since the employer's accounting department must make the deduction and send it to the creditor, talk to the employer first to see if this arrangement is acceptable. Some employers refuse to handle voluntary wage assignments because it complicates their payroll procedure. If acceptable to the employer, the voluntary wage assignment is better than a garnishment. In the eyes of the employer, the debtor is taking the responsibility of arranging to meet their obligations, rather than being forced to pay debts. Some employers find reasons to suspend or fire employees if their wages are garnished.

Other Nebraska Collections-Creditors Rights FAQs

Q: Can A Creditor Sue?
A: Yes. The costs usually include court filing fees, a lawyer's fee, the sheriff's fee, possibly a collection agency fee, plus hours of the creditor's time. Even if the … More
Q: Can A Creditor Get A Judgment?
A: Even though creditors may get judgments (court orders saying debtor owes the money), creditors may not be able to collect. If the debtors don't own a home, are … More
Q: Does A Creditor Have To Be Polite?
A: Sometimes creditors may be rude, offensive, or threatening, it never helps .The creditor may be using this rude behavior intentionally to provoke the debtor into … More
Q: Can A Creditor Add A Penalty Clause?
A: Sometimes a creditor will refuse to believe the debtors promises of payment. This often happens if the debtor has been unable to keep up with a previous payment … More