Stop Wage Garnishment Today With Bankruptcy
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Stop Wage Garnishment

If you’ve fallen a bit behind on debt payments, creditors may try to pilfer funds directly from your bank account. One really aggressive tactic is to garnish wages directly from your paycheck. In these instances, creditors deduct money directly from your paycheck or bank account before it ever reaches your hand.

Wage garnishment can lead to a dramatic loss in income, and it may destroy your financial health. Personal bankruptcy is a proven antidote to this financial ill. In fact, the bankruptcy automatic stay was designed to stop wage garnishment during the bankruptcy process.

To learn how you may use bankruptcy to stop your wage garnishment, complete the free form on this page to speak with a bankruptcy lawyer near you.

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Can You Stop Wage Garnishment by Filing Bankruptcy?

While wage garnishment is a court order typically reserved for extreme circumstances, some creditors are more willing than others to use this aggressive option. In some states it is particularly easy for a creditor to claim large portions of your paycheck or savings account. If you are the victim of wage garnishment, take steps to protect your hard earned money.

In fact, by filing bankruptcy, you should be able to put a halt to wage garnishment. Here’s how this works:

  • When you file for bankruptcy, you should immediately receive the benefit of the automatic stay.
  • This prevents creditors from taking collection actions against you, including wage garnishment.
  • Other types of actions that are typically barred include harassing phone calls and letters; repossession; lawsuits.
  • The automatic stay lasts through the duration of your bankruptcy proceeding.

This automatic stay is available in both Chapter 7 and Chapter 13, which are the two forms of personal bankruptcy. While both types of bankruptcy can stop wage garnishment, each offers unique benefits.

Chapter Seven is for people with limited income who are looking to discharge some or all of their unsecured debts, including medical bills, credit card bills, and payday loans.

On the other hand, Chapter Thirteen is reserved for individuals with steady sources of income who can afford to make regular payments on a reorganized debt plan.

Eligibility requirements for Chapter 7 and Chapter 13 vary by state. A local bankruptcy lawyer can help you determine if you are able to file.

Wage Garnishment Requirements

While bankruptcy can be a powerful tool in your effort to stop wage garnishment, your creditor may also have made a fatal error in its garnishing attempt. Here are a few guidelines creditors must follow:

  • Court order. A creditor must obtain a valid court order before taking a cut of your paychecks.
  • Limited amount. This varies by state, but most wage garnishments are capped at 25 percent of your disposable income.
  • Spousal limits. Creditors may be able to garnish your spouse’s wages to meet your debts but, again, their ability to do so may be limited in some states.

Thus, creditors cannot simply reach into your bank account without first jumping through several legal hoops. If your wages are being garnished, make sure the creditor has followed the proper steps.

Of course, for wage garnishments that are legally applied, personal bankruptcy offers a powerful remedy. To learn more about stopping wage garnishment, call a lawyer today.

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