Not sure if this is the correct forum, but here goes.
I have heard that if you work as an Independent Contractor (specifically, as a Medical Transcriptionist Independent Contractor), since you are not technically an “employee” a creditor cannot get a court order to have your wages garnished. Is this correct?
More specifics. I work as an IC for a large company with hundreds of employees and ICs working for them. The company sends work to me as they need the work completed. I then bill them for the work I do for them. No taxes, etc are taken out from the check I receive from the company.
Second part of the question: If it is true that a creditor cannot have my IC check garnished by the company I work for, is there any other way for a creditor to get a court order against my wages or bank accounts?
Does this apply to all creditors? That is, credit cards, utilities, medical bills, student loans, and IRS. Or are there different ways to get a court order against my wages depending on the type of funds owed?
I was unemployed due to medical reasons for over a year and thus got very far behind in several bills. I just recently obtained an IC job, but it will be some time before I can cover ALL the back bills. I would like to have a game plan as to which bills I should try to pay off first in order to avoid any type of garnishment, which will only make it harder to pay the other bills already past due.
I know I can wait until I get a court notification if the credit card company, utility company, or medical bill collection agencies attempt garnishment and try to pay that bill first, but I think that student loans and the IRS can go directly to garnishment without a court order. If the IRS and student loans cannot garnish my IC check, I can probably hold them off for awhile and try to pay off the other bills first. I really would like to know in what order I should try to pay off my past due accounts.
Thank you for your time.