Bankruptcies Higher In Wage Garnishment States

The Associated Press recently studied trends in bankruptcy filings. One thing stood out to them: in states where debt collectors can garnish wages, bankruptcies are sharply higher.
Five states, North Carolina, Pennsylvania, South Carolina, Florida and Texas, prohibit or sharply limit a creditors right to garnish wages. According to the Associated Press, “The nationwide bankruptcy rate is 42 percent higher than the rate in those five states.”
There is a simple message here: by allowing debt collectors to go after someone’s income, you make it substantially more likely that the debtor will file for bankruptcy. And this helps no one. [...]

Continue reading the original post by steinlaw