Can you qualify for credit card debt forgiveness if your wages have been garnished?

MoneyWatch: Managing Your Money Can you qualify for credit card debt forgiveness if your wages have been garnished? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson April 16, 2026 / 2:44 PM EDT / CBS News Add CBS News on Google Wage garnishment can affect your eligibility for certain debt relief options, but not in the way some borrowers may assume. Hanizam/Getty Images If you find yourself increasingly worried about your personal financial health now, it's easy to see why. Inflation in March surged to its highest level in years, and a frozen Federal funds rate that hasn't been reduced since December is helping to keep borrowing costs high. While unemployment has improved, stock market returns are also particularly volatile, hitting a new record high this week after an especially turbulent March. And if you're a credit card borrower in this climate, your financial situation may be even more precarious.The average credit card interest rate is around 21%, making it one of the most expensive ways to borrow money now. Interest on any accumulated debt, meanwhile, will compound daily, allowing even the most manageable debt balances to quickly spiral out of control. If this has already happened to you, it's not uncommon to find yourself at the next inevitable stage – wage garnishment. This occurs when a credit card company sues you and wins a court judgment to have a portion of your paycheck intercepted to repay what you owe. This can devastate your finances and make it more difficult to pay...