At any time you are the subject of a wage garnishment (also called wage attachment) and can not afford fundamental living expenses, you may have the ability to lower the total of wage garnishment or get rid of it entirely. Potential options include filing a claim of exemption, filing for bankruptcy, or vacating the judgment. Read on to understand better about these options.
Most creditors are not able to garnish your earnings without first getting a money judgment against you. This means the creditor has to sue you in court and then either win its case or else get a default judgment (which it acquires if you don’t react to the lawsuit). Some creditors, though, can garnish your wages without the need for a judgment. After the creditor obtains the judgment, it sends documents to your employer directing your employer to take a certain sum from your pay and send that money directly to the creditor.
If you won’t be able to afford fundamental living expenses for yourself or your family with the wage garnishment, you may consider filing bankruptcy.
Filing bankruptcy stops wage garnishments. Whenever you declare bankruptcy, an automatic stay comes into effect that ends most varieties of salary garnishments. On the occasion the case is filed, it is necessary to be certain that both the creditor and the clerk of court obtain notice of the filing of the bankruptcy. The type of bankruptcy you file determines the type of long-term relief you will receive.
Chapter 7 bankruptcy. In Chapter 7 bankruptcy, if the bankruptcy court discharges the debt producing the garnishment, then the garnishment is terminated for good. On the other hand, certain kinds of debts endure the Chapter 7 bankruptcy, which signifies the creditor can go on with with the wage garnishment after the bankruptcy. Chapter 13 bankruptcy. Although the automatic stay is relevant in Chapter 13 bankruptcy as well, various bankruptcy courts require that your monthly Chapter 13 payments be deducted directly from your paycheck.
The Houston Bankruptcy Law Firm of William K. Vaughn works with individuals and families throughout Harris, Montgomery, Fort Bend, Brazoria and Galveston Counties. Call us Today at 713-568-2762 for a complimentary initial consultation to discuss how Texas Bankruptcy can help you stop wage garnishment.