If you happen to owe a creditor money and are not able to make the payments, your lender may take matters into their own hands and attempt to garnish your wages. If a creditor was to garnish your wages this means that around 25% of your regular paycheck will be taken away and sent directly to them.
The best way to stop wage garnishment is to work directly with your lenders before they get permission from the court to garnish your wages. You should try to offer them a payment plan and let them know how serious you are about paying off your debt(s). This will give you the chance to get on an installment plan that prevents wage garnishment from happening as long as you keep making the proposed payments. If a lender/creditor gets approval from the court to garnish your wages, it is proven to be more difficult to stop wage garnishment.
Options to Reduce Wage Garnishment
You should know that there are two kinds of wage garnishments that may reduce your paycheck by more than 25%. If you have unpaid child support, a court may approve of 50% or more of your wages. If you owe federal taxes, the IRS is allowed to take a substantial amount from your paycheck to cover your bill. However, if you happen to not earn enough and make just minimum wage, then your paychecks may not be garnished at all.
Options for Filing Bankruptcy To Prevent Wage Garnishment
If your attempt to work directly with your lenders does not work unfortunately, you make need to consider filing for bankruptcy. You have the option to file a Chapter 7 or a Chapter 13 and both will prevent any wage garnishment from taking place.
Don’t feel intimidated by the process of filing bankruptcy, we are here to help! Reach out to an experienced Bankruptcy Attorney to help you with the process of avoiding wage garnishment and getting a fresh start!
Thought of the Day:
“Don’t be afraid to go out on a limb. That’s where the fruit is.”