Securing repayment of a debt is an essential part to virtually any business. Unfortunately, creditors tend to get a bad rap for simply trying to recover the money they are owed. There is plenty of confusion surrounding creditors’ rights as well, which can make things even more complicated. 

Can creditors garnish wages? 

In Georgia, it is possible for creditors to garnish as much as 25% of wages when debtors either refuse to repay debts or only make minimal efforts to do so. Creditors do need to go to court to obtain a judgment first, though. Since going to court can be a costly action in and of itself, creditors may want to weigh the potential benefits versus the cost. 

What other actions can creditors take? 

Wage garnishment is far from the only option for recovering unpaid debts. In some situations, it is even possible to work with debtors informally — outside the court system — to find a solution together. When this is not possible creditors may want to consider some of these other options: 

  • Property liens 
  • Asset seizure 
  • Taking tax refunds 

Encouraging debtors to repay their debts can be challenging. Many creditors in Georgia struggle to find the right approach to recovering their debts, especially if they are unsure of what their own rights are. While this is an understandable concern, it is not a good idea to simply let unpaid debts go, as it can affect the bottom line of a business. Instead, creditors may want to more thoroughly explore their options by speaking with a knowledgeable attorney.