Wage garnishment can dramatically decrease your income flow and your quality of life. When you have debts that you are unable to pay, a creditor may seek a wage garnishment order. If the order is granted, money from your paychecks will go directly to your creditors. Fortunately, if you are the victim of wage garnishment, filing for bankruptcy can help you find relief. Here is some information about ending wage garnishment with bankruptcy.
- What is Wage Garnishment?
As mentioned above, wage garnishment results from a court order filed by a creditor. Wage garnishment can be devastating for your financial health. For example, if your monthly budget assumes that you will be collecting your wages in full, a garnishment can compromise those plans, making it difficult for you make ends meet. Another issue with wage garnishment is the fact that your employer will become aware of your financial situation. Instead of having you pay your debts, wage garnishment orders require your employer to divert a certain portion of your paycheck to your creditors. While an employer can’t fire you if you are the victim of wage garnishment, this is not necessarily the case if you’ve been subject to multiple wage garnishment orders.
- How Can You Stop Wage Garnishment?
If you are the victim of wage garnishment, filing for bankruptcy can provide relief. Although there are exceptions when it comes to non-dischargeable debts like child support, filing for bankruptcy will put an immediate end to wage garnishment. When you file for Chapter 7 bankruptcy, for example, the court orders what is called an “automatic stay” that stops all wage garnishment immediately. All debt collection stops until the bankruptcy proceedings are completed. Declaring bankruptcy is an effective way to reorganize your debts and regain your financial footing.
If you have recently become the victim of a wage garnishment order, do not hesitate to consult an attorney and file for bankruptcy. Wage garnishment can be extremely difficult to live with, as it decreases your income flow and makes it difficult to pay for essentials like food, gas, and rent.
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