Stop Wage Garnishments With Chapter 7 Bankruptcy
Wage garnishments are one of the most common and effective ways creditors can collect on a debt. But what happens if you file for bankruptcy in New York? Can bankruptcy stop wage garnishments? Putting a permanent stop to wage garnishment may be possible for you.
What is Wage Garnishment?
Wage garnishment is a legal process in which a court orders an employer to withhold a portion of an employee’s wages to satisfy a debt. The most common type of wage garnishment is for child support or alimony payments, but it can also be used to collect debts such as unpaid taxes, student loans, or credit card bills.
Wage garnishments can have a significant impact on wage earners in New York. If a creditor obtains a court order to garnish wages, the employer must comply by withholding a designated amount from the employee’s paycheck and sending it to the creditor. This can create financial hardship for the employee, who may be forced to live on a much-reduced income. Additionally, wage garnishments can damage the employee’s credit score, making it more difficult to obtain loans or other forms of credit in the future.
When a court issues a wage garnishment order, the employer must comply or face penalties. The employer will typically deduct the required amount from the employee’s paycheck and send it to the creditor. In some cases, the employer may be responsible for paying the entire debt if the employee does not have enough wages to cover the garnishment amount.
Wage garnishments can be a burden for both employers and employees, so it’s important to understand your rights and options before they happen with a dependable New York bankruptcy lawyer. If you’re facing wage garnishments, a bankruptcy attorney may be able to help facilitate the often complex process of bankruptcy.
If you are subject to wage garnishment, your employer is required to notify you of the impending seizure of your wages. You will also receive a copy of the garnishment order, which will specify the amount that will be deducted from your pay and the creditor or agency that is receiving the payment.
If you have questions about wage garnishments or want help dealing with one, speak with a bankruptcy attorney who has had successful cases similar to yours before. The laws governing wage garnishments vary from state to state, and an experienced bankruptcy lawyer can help you understand your rights and options effectively.
End Wage Garnishment By Speaking With A Knowledgeable Chapter 7 Bankruptcy Attorney
If you’ve ever had your wages garnished, then you know how upsetting it can be. Wages are usually garnished after a creditor gets a judgment against you and decides to go back to court to get an order of garnishment. This means the money will go straight from your paycheck to the creditor without reaching you.
If your wages are being garnished and you want it to stop, a Chapter 7 bankruptcy lawyer can help.
When you file for bankruptcy, the law immediately protects you from creditors by imposing an “automatic stay.” The stay orders creditors to stop any and all collection activities going on against you, including garnishment. Once you have filed, the chapter 7 bankruptcy eliminates all dischargeable debts so that the garnishment doesn’t start again.
The debt and wage garnishment process is extremely stress-inducing. Luckily, the experienced New York bankruptcy lawyer at The Law Firm of Joseph Lassen is more than qualified to help you through this tough time. So if you find yourself searching for “bankruptcy lawyers near me,” have no fear.
If you’re considering filing for Chapter 7 bankruptcy, our Staten Island New York Bankruptcy Lawyers can help evaluate your individual financial situation and recommend the best course of action.