Blog > 2022 > February > How Bankruptcy Can Help With Wage Garnishments
If you’ve ever had your wages garnished, you know first-hand how devastating this can be for your finances. Especially in today’s climate, families are struggling to make ends meet.
Up ahead, we’ll outline how bankruptcy may be able to help you if you are in a difficult financial situation and your wages are being garnished. First, however, let’s go over what wage garnishment is.
Wage garnishment depends mainly on your creditors and whether they have sued you in court. That is, most creditors must sue and get a money judgment before receiving the court order to begin garnishing wages. If a money judgment comes through, the creditor will notify your employer, who will be forced to keep a certain amount of your payback every pay period. This money will be given to the creditor.
In some circumstances, however, the court does not matter. For example, lawsuits are not needed for back taxes, child support, and student loans. Although these entities can garnish your wages in certain circumstances, there are wage garnishment laws that protect them from holding back too much of your pay. The problem is that, for many families, even a tiny amount can cause serious financial problems.
The first thing you should know is that bankruptcy can stop a wage garnishment dead in its tracks. During a bankruptcy case, the automatic stay will prevent any collection actions by creditors, including wage garnishment.
The second thing to know is that bankruptcy may even help you get the money garnished from you. However, this is not definitive.
Many people worry that their wage garnishment will be reinstated after their bankruptcy case is over. The good news is that if the bankruptcy proceedings could discharge the affected debt, the wage garnishment will not be reinstated after your bankruptcy case is over. On the other hand, if the fake debt was not discharged or wiped out, your creditor may decide to begin garnishing your wages again.
If you are having your wages garnished or if you fear they may be garnished very soon, bankruptcy may be able to help you get back on track. The best way to know if this is possible is to discuss your financial situation with a bankruptcy lawyer. At SM Law Group, APC, we specialize in bankruptcy law. For many individuals, couples, and families, bankruptcy can be a vital process that relieves financial stress.
Please give SM Law Group, APC a call today to learn about your options. We offer free consultations and would be happy to discuss them with you.
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