July 23, 2019
How Bankruptcy can stop Wage Garnishments
Wage garnishments can make a big dent in your finances. This can hit you hard since you are already in debt. A creditor can take as much as 25% (or even more) of your pay, reducing your take-home and making it difficult for you to manage your expenses.
Will Declaring Bankruptcy Help You?
When you are already in financial trouble you should explore bankruptcy options. If you declare bankruptcy, the garnishments will stop and you may even be able to recover some of the money already taken from you, giving your finances a much-needed boost.
Depending on what kind of bankruptcy you file – Chapter 7 or Chapter 13 – and what kind of debts, you will get immediate relief from wage garnishments.
What Happens Once the Bankruptcy Proceedings End?
Getting a Stay
When you file for bankruptcy, you will get a court that prevents creditors from collecting debts from you via wage garnishments. It also stops creditors from calling you, billing you and suing you.
What happens once the bankruptcy proceedings end?
When your proceedings are over, your creditors will not be able to resume garnishments as before. Among the debts not liable for wage garnishments are:
- Discharged debts
- Credit cards outstanding
- Personal loans
- Medical bills
How to make sure that the Wage Garnishments Stop?
When you file bankruptcy proceedings, the court will, within days, notify the creditors. Your attorney will notify the creditors that the case filed, and require the creditor to stop the Wage Garnishment. The Attorney will follow-up and make sure they stop garnishing.
How can you Recover Money that has already been Garnished?
Your attorney can often recover money that was garnished from you already. It requires a Judge’s involvement and is most often successful.
Contact Steven Fishman today for a free consultation.