If you owe a debt, you might get your paycheck one day and realize that it seems to be missing some money. Before you see if your employer made a mistake, it’s important to figure out if someone has started to garnish your wages. There are a few ways to stop wage garnishment, but the best option for you can depend on a number of factors. A Rockland County Chapter 13 bankruptcy lawyer can tell you more about the next steps.
When Does Wage Garnishment Begin?
A creditor won’t immediately jump to wage garnishment. In most cases, they only try this option once other attempts have been made to collect on a debt. If you have ignored letters or phone calls, then a creditor can go to court and ask to take money directly out of your paycheck. There are limitations to how much can be taken out of your check, but even having just a little bit of your normal pay taken away from you can cause financial hardship.
There are also some types of debt that can lead to wage garnishment without the need for a court case. This includes back taxes, alimony, and child support.
Are There Ways to Stop Wage Garnishment?
There are a few ways to stop wage garnishment, so it’s important to evaluate all of them and figure out which method is a good fit for you based on how much debt you have, your income, and what kind of debt is causing the garnishment. Some options include:
- Paying off your debt
- Asking for an exemption due to financial or personal hardship
- Consolidating your debts
- Going into debt counseling to make a repayment plan
- Filing for bankruptcy
When you file for bankruptcy, an “automatic stay” is issued. This puts a stop to all collection activity by your creditors, and this includes wage garnishment. However, there are some important details to consider before you file.
Is Bankruptcy the Right Option For Me?
Filing for Chapter 13 or Chapter 7 bankruptcy can put a stop to wage garnishment. Not all types of debt can be addressed this way though. If a type of debt cannot be wiped out in bankruptcy, it’s unlikely that the automatic stay will stop wage garnishment for very long, if at all. So it’s probably not worthwhile to file for bankruptcy if you are dealing with:
- Certain types of tax debts
- Child support
- Student loans
This is why you should consult with an attorney before filing. It may not even be worthwhile to go through the bankruptcy process! You also have to remember the drawbacks of bankruptcy, like the hit to your credit score that can last for years. There may be other options that do not make it so much harder for you to secure loans or credit in the near future.
Contact Our Lawyers Today
If you are ready to stop wage garnishment and think that bankruptcy may be a good option for you, contact the Lauterbach Law Firm. We can make sure that you are informed about this process before you make any decisions.
