How to handle a wage garnishment
March 10th, 2016
One of the top reasons that clients come to see me is to stop wage garnishment. A wage garnishment occurs when a creditor has obtained a judgment against a debtor and then proceeds to serve the debtor's employer with paperwork that forces a portion of the debtor's paycheck to be sent to the creditor every month until the judgment is paid. Most judgments are paid with interest based upon the amount of the interest that is permitted to be charged under the terms of the contract. When a garnishment is put in place, the debtor can lose up to 25% of their paycheck every week until the judgment is satisfied. However, the garnishment can be stopped through the filing of a bankruptcy. Once a bankruptcy is filed, the debtor is protected by a very powerful federal law called the automatic stay. The automatic stay stops all actions of a creditor to collect on their debt as soon as the bankruptcy is filed. This means that, even if a garnishment is already in place when the bankruptcy is filed, the garnishment must be set aside as soon as the creditor gets notice of the bankruptcy. In certain cases, I have even been successful in recovering funds that the creditor garnishes prior to the filing of the bankruptcy. If you or someone you know is unable to pay their monthly bills because of a crippling garnishment on their wages, please call my office to schedule a free first appointment.