As many fall behind on their credit card or other forms of debt they face a barrage of phone calls and lawsuits from the creditors. A wage garnishment is placed after a judgment against the debtor has been obtained by the creditor. Generally a garnishment is a tool of last resort used by a creditor; however it is also the most effective way to get the debtor’s attention. A wage garnishment can take up to 25% of the individuals income per paycheck.
A wage garnishment can also have a negative impact on the relationship of the employer and the employee. The employer may feel that the employee is not a responsible individual and the hassle of the garnishment is just not a cost efficient way of running a business. The last thing anyone wants is to be laid off for any reason.
During these hard economic times one cannot just afford to give away 25% of their hard earned money. Bankruptcy can help stop the garnishment in its tracks. Even if a wage garnishment has been started filing a bankruptcy can stop it immediately. Many people have successfully used bankruptcy as a tool to get a fresh start and wipe away all of their debt.