If you have debts, sometimes a creditor will begin taking what they’re owed right out of your paycheck. This is called a wage garnishment, and it’s rarely a pleasant thing to deal with. Not only can it cause financial headaches, but many people are embarrassed to have creditors take a slice of their paycheck before it reaches them. There are ways to stop wage garnishment though, and a Bergen County Chapter 7 bankruptcy lawyer from our firm can help you figure out your best options.
When Can Creditors Start Wage Garnishment?
It is rare for a creditor to attempt wage garnishment right away. This is usually something that happens because they believe that they have exhausted all other attempts at debt collection. If you ignore correspondence from a creditor and refuse to pay what you owe, they might go to court and ask to garnish your wages.
Sometimes a court order is not even necessary. Debts like unpaid student loans, alimony, child support, and back taxes can result in wage garnishments through a process known as administrative wage garnishment, or AWG. Coincidentally, these are also the types of debt that are difficult if not impossible to wipe out in bankruptcy. We’ll talk about that more in a second.
Are There Ways to Stop Wage Garnishment?
There are a few ways to stop your wages from being garnished. Some potential options include:
- Paying off your debt
- Making a payment plan with a creditor
- Making a payment plan through debt counseling
- Filing for bankruptcy
- Asking for an exemption due to hardship
Does it Matter Which Chapter of Bankruptcy I File For?
When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is issued. This stops debt collection activities and this includes wage garnishment. A creditor that wants to continue garnishing your pay will have to go to court and get the stay lifted, and the success of this petition is far from guaranteed.
Once collection activities are stopped, you make a plan to pay off your debt. A bankruptcy does stay on your record for years though, so only do this if you can actually wipe out a significant amount of your debt through this process. Some types of debt, like back child support and student loans, are not going to be wiped out through bankruptcy. This is why it’s important to consult with an attorney and figure out the best method to address a wage garnishment, even if bankruptcy is not the way to go.
Talk to a Bankruptcy Attorney
If you are dealing with wage garnishment and other debt collection actions, bankruptcy may be your way out. Contact the Law Office of Boyd & Squitieri to schedule a consultation with our team. We can tell you more about the bankruptcy process and help you figure out if it’s the right option for you.
