Stop Wage Garnishments

The debt collection process eventually leads to a wage garnishment. Usually, a creditor will attempt to collect a debt for some time before passing that debt to a collection agency. If the collection agency cannot recover the debt, they will file a lawsuit. If you fail to answer the lawsuit or if you lose in the process of litigation, a judgment will be entered against you. One of the ways the creditor will collect on this judgment is by garnishing your wages (If your income comes from social security benefits, retirement plan benefits or from public assistance, your income cannot be garnished). This is an important tool that all creditors use.

For most people, this garnishment may be very difficult to cope with. Many individuals and families have a specific budget which allows them to stay financially stable. A disruption in this stability leads to further financial stress (e.g. falling behind on mortgage payments, car payments, other bills, etc.). A wage garnishment is also embarrassing because it forces your employer to cooperate. Federal law protects you from being fired for garnishment of one debt. Your employer, however, can fire you for having more than one wage garnishment.

If you are currently experiencing a wage garnishment, we can help! The filing of a chapter 7 bankruptcy will immediately stop any wage garnishment. You will have the protection of the "automatic stay" under the bankruptcy law. If there is any money taken from your pay after the chapter 7 bankruptcy filing, we can recover that money. The only exception to the rule is wage garnishment for child support and alimony.

Once the chapter 7 bankruptcy is complete and you receive your discharge, the creditor will never be able to garnish your wages. The debt will be wiped out.