Question from a reader:
If A, B, and C companies have lent me money and my salary is being garnished because I can’t repay, will a quarter of my salary be deducted? Also, what happens if a garnishment comes to my house and there are no assets to seize?

The Reality of Salary Garnishment and the Impact of Asset Seizure

Hmm, this
is a rather heavy topic, but I want to consider what happens when you borrow money and can’t repay it. You borrowed money from A, B, and C companies but can’t pay it back. In such cases, your salary may be garnished. Let’s take a look at the legal procedures involved in this situation.

The Basic Flow of Salary Garnishment

First, when a salary garnishment occurs, the process is carried out through the court. If you are demanded to repay your debts and ultimately lose in court, the creditor (the party that lent you money) can request a garnishment of your salary. At this time, the garnishment of your salary can only occur within the limits set by law. When your salary is actually garnished, it is generally a quarter of your salary that is seized. However, this can vary depending on how much your salary is and what deductions you have. For example, if your take-home pay is 200,000 yen, a quarter would be 50,000 yen. This amount would be deducted every month.

Specific Case Study

Now, let’s consider a specific case. For instance, my friend Tanaka-kun (a pseudonym) borrowed money from A, B, and C companies. Initially, he was able to make repayments, but unexpected expenses piled up, and he started to fall behind on payments. One day, Tanaka-kun receives a notice from the court. “Your salary will be garnished.” Tanaka-kun is shocked, and his already difficult life becomes even tougher. Once his salary is garnished, the amount of money left in his hands will be quite limited.

Garnishment Ratio and Impact

Tanaka-kun’s take-home pay is 250,000 yen. Since a quarter will be garnished, 62,500 yen will be deducted each month. When he considers living expenses, miscellaneous costs, and rent, he is expected to face a very tough situation. As you can see, salary garnishment is extremely harsh. There is a high possibility that his living situation will become quite dire. Additionally, the psychological burden of having his salary garnished is significant. Like Tanaka-kun, many people around him may also have financial issues, making it difficult to plan for the future.

What to Do If a Garnishment Comes to Your House

Next, we need to consider what happens if a garnishment comes to Tanaka-kun’s house and there are no assets to seize. First, before a garnishment occurs, the creditor must file a petition with the court. What’s important here is that if there are no assets to seize, the creditor will have to consider their next steps. In other words, if there are no assets, garnishment cannot occur, and the creditor will have to take other measures.

Impact When Garnishment Cannot Occur

This can be more severe than expected, as the creditor will then register information with credit reporting agencies. This means that Tanaka-kun will find it very difficult to borrow money in the future, use credit cards, or even obtain a mortgage. This leads to not only financial damage but also psychological stress. When Tanaka-kun feels that “there’s nothing I can do,” it becomes necessary to find some kind of solution. In such situations, it is strongly advised to consult with a professional. Legal experts such as judicial scriveners and lawyers can understand your situation and provide appropriate advice.

In Conclusion

This time, we considered what happens with salary garnishment and asset seizure, as well as their impacts. Of course, the legal aspects are complex, so trying to resolve everything on your own can be difficult. However, one thing is certain: taking action early can significantly change your future living situation. If you find yourself in a situation like Tanaka-kun’s, it is important to stay calm and consult with a professional. Debt issues should not be faced alone; it is necessary to seek support from those around you and gradually find solutions. Moving forward in life, I want to find a way to recover somehow.