Dealing with debt can be one of the hardest things one has to face. While you have been saving to ensure you pay your bills on time, you might find that your wages are suddenly being garnished.
How Does Wage Garnishment Work?
Your creditor can get access to your wages or bank account to get a debt paid after a lawsuit has been filed and the court enters a judgment against you. Many times, people do not even know that they have had a judgment entered against them. The creditor can request the court to issue a turnover order to any entity that has control over any money owed to you (usually an employer or a bank).
There is a limit to how much a creditor is allowed to garnish from your wages, usually up to 25% of the employee’s disposable earnings. But in cases where your income and bills are around the same amount, the slightest deficit can make a huge difference. You may not be left with enough money to pay other bills like your mortgage, car payments, or utilities. Garnishment continues until the debt is paid in full with interest. It is a devastating way to have to repay a debt.
How Can Filing Bankruptcy Stop Wage Garnishment?
Filing for bankruptcy is one of the best ways to put an end to wage garnishment. When you file for bankruptcy, an automatic stay goes into effect as soon as you case is filed. This will prevent creditors from collecting money from your bank account and will stop a garnishment from coming out of your paycheck. They will not be allowed to call or contact you in any way. Bankruptcy renders the creditors zero power over your wages.
If you have received any sort of notification that a creditor plans to garnish your wages, immediately filing for bankruptcy can stop your money from being taken away.
At the law offices of King & King, we are ready to help protect you from wage garnishment, and help you get the fresh start you need. If you are concerned about your wages being garnished, talk to one of our bankruptcy lawyers by scheduling a free consultation at 404-524-6400.