Stop Wage Garnishment With Bankruptcy
If your earnings are being garnished by creditors, you can stop them by filing for bankruptcy. Use this simple tutorial to learn about wage garnishments and bankruptcy.
If you are now facing income garnishment or have recently received notice that wage garnishment is imminent, you should move fast and contact an experienced Oklahoma City bankruptcy attorney as soon as possible.
About Wage Garnishment
A creditor might attempt to collect payment on a delinquent obligation in several methods, one of which is wage garnishment which has to be by a court order. This method transfers money from your paycheck to a creditor regularly to pay off your debt. While wage garnishment is advantageous in that it allows you to pay off your debts, it can place you in an even more difficult condition than you were before the garnishment.
You may find it difficult to provide for yourself and your family if you do not receive your entire paycheck. You may find yourself utilizing credit cards or high-interest personal loans to pay bills and put food on the table, but you risk relapsing into the same debt cycle that got you here in the first place. If the garnishment is costing you more than you can afford to pay, it may be time to file for bankruptcy.
Bankruptcy and the Automatic Stay
An “automatic stay” is imposed on your credit when you file a Chapter 13 “adjustment of debts” or a Chapter 7 “straight bankruptcy.” The automatic stay, at its most basic level, prevents practically all of your debts from being collected further. Restitution and criminal fines, as well as most spousal and child support, are rare exceptions because they are considered priority debts and are unaffected by bankruptcy. Your creditors can no longer collect on your debts once you file for bankruptcy, however, they can ask the court to lift the stay. This request, however, is only granted under limited circumstances.
Creditors cannot garnish your income unless they first file and win a lawsuit against you, obtain a judgement in their favor, and then file a garnishment affidavit to be able to collect the judgment. By declaring bankruptcy, you are preventing the lawsuit from becoming a judgement, and your creditors will not be able to garnish your earnings if there is no judgement.
Stop Wage Garnishment Today
Although filing for bankruptcy instantly places an automatic stay in place and stops any collection efforts, wage garnishment may continue until you notify all of your creditors. Notify your employer’s payroll department of your bankruptcy right away to stop a wage garnishment.
Wage garnishment does not occur without notice; consumers must be alerted before a wage garnishment is implemented. It’s critical to respond quickly if you’ve received notice of impending wage garnishment. You will be better off if you get help from an expert bankruptcy lawyer as soon as possible.
At Hilbern Law, we work closely with each of our clients to determine the best course of action for achieving the best results. We choose the measures for you based on your personal needs and individual case, whether we recommend bankruptcy to stop collection operations against you or we determine that another route of settlement is in your best interest. Hilbern Law has over 20 years of experience and can assist you in making the best decision possible. To schedule your free initial appointment, call (405) 213-1919 today.
You have nothing to lose but your debt.