If you have fallen so far behind on your payments that creditors want to take you to court, you may not have enough income to cover all of your bills every month. Just trying to make the monthly minimum payments on all of your accounts may become prohibitively difficult.
Unfortunately, the companies that want you to pay them back are unlikely to think about the hardship that their debt collection practices might cause. Instead, they just care about getting your money as quickly as possible. If they take you to court and secure a garnishment of your wages, that would likely lead to an even worse financial situation for you.
If the courts agree with a creditor and garnish your wages, they will allow that creditor to take a certain amount of your income every month before the money ever reaches your account. Garnishment effectively bypasses the person who owes the debt and allows the creditor to get the money directly.
The obvious problem with garnishment is that it will reduce someone’s income even more. You will have less money to cover the same responsibilities every month if a creditor successfully sues you and secures a wage garnishment. A garnishment could push you even further behind with your other responsibilities.
Once the courts award your creditor a garnishment, you will have a hard time ending it before you repay the debts involved. Bankruptcy typically will not end a garnishment already ordered by the court, but it can lead to the dismissal of a lawsuit before a creditor receives a judgment against you. Considering bankruptcy before your creditors take legal action against you can help you regain control over your finances.