There may have been a time in your life when things were going very well from a financial standpoint and then everything went downhill. You may be in a ton of debt and being harassed by creditors. When this occurs, you need not despair — there are solutions for every situation.
If you are about to have your wages garnished, there are options available that can prevent this from taking place. An experienced attorney can assist in helping you file for bankruptcy to protect your finances until you can get things straightened out.
What Is a Wage Garnishment?
Even if you are about to have your wages garnished, you may not fully understand what is about to happen. Wage garnishment starts with a court order that grants the creditor permission to collect between 15-25% of your wages after taxes to pay off your debt. The status of your tax filing will also affect this deduction. If there is no paycheck or means to collect from an employer, the creditors may get a court order to get money from your checking or savings account. This is usually the first route creditors take when attempting to garnish your wages.
How Can This Be Alleviated?
The U.S. Bankruptcy Code has provisions that protect the individual from wage garnishment. All legal proceedings against the person must immediately and automatically stop once they file for bankruptcy protection. This means all collections actions, foreclosure proceedings, repossessions and liens will be put on hold, pending the outcome of the debt restructuring under Chapter 13 or any debt discharges under Chapter 7.
An experienced bankruptcy attorney can file an emergency petition for bankruptcy for court approval. It is also called an automatic stay. This can prevent your wages from being garnished and any monies that have been taken to be returned.
It is important to know your rights. Many creditors and collection agencies break the law by using aggressive tactics. You do not have to subject yourself to this type of harassment. A bankruptcy attorney can step in on your behalf to protect your rights. Although bankruptcy is not the answer for some, if you are facing wage garnishment, this solution could give you peace of mind and help you get things back on track.
This could make a significant difference in what happens next. If you are granted an automatic stay and the creditors continue enforcement action, they will be subject to a civil suit. You could be granted compensation for damages, attorney’s fees and punitive damages as well.
How Does Filing for Bankruptcy Affect Me?
Filing an emergency petition for bankruptcy will stop the immediate garnishment, and could help you in a number of ways. Filing for bankruptcy can help you repair your credit and get things moving in the right direction. Once the bankruptcy is filed, it is important to review your credit report 30 days after receiving the discharge. Your negative credit history is being updated, but you now have a chance to rebuild and do things the right way. If your attorney sees some items that have not been discharged, it can be disputed and will help your credit score continue to rise over time.
Is This the Only Option?
For many, yes. If you are in a situation where your funds are about to be or have been garnished, filing for an emergency bankruptcy will probably be one of the only solutions that can grant you immediate relief and allow you to keep the funds you need to live on. Although bankruptcy may sound scary, it could be one of the best moves you can make for your immediate future. No one wants to have creditors hanging over their head for the rest of their lives – this can give you a clean slate. Regardless of why you are in the situation, this could provide peace of mind.
Look for a Positive Future
The Kentucky bankruptcy attorneys at Bunch & Brock are familiar with every aspect of debtor and creditor issues, including wage garnishment. We are a debt relief firm committed to providing each of our clients with personal attention and real solutions to financial troubles. We understand that circumstances exist that can result in financial problems for even the most conscientious of people; and for more than 35 years, we have been helping people who were struggling with these very issues. If you wish to learn more about how our firm can be of assistance to you, or you want to learn more about this topic, we encourage you to contact us by calling 859-254-5522 or filling out this online form.
Attorney Matthew Bunch
Matt handles complicated bankruptcies and debt restructuring in Chapters 11 and 13 for both individuals and companies. He has also negotiated with multiple creditors on behalf of his clients to avoid bankruptcy. Matt is the firm’s lead litigator and handles contract disputes, certain personal injury claims and general litigation. [ attorney bio ]
