If you are in over your head with debts, chances are one or more of your lenders have sued you for a past due bill. If a judgment has been entered against you, the next step most lenders take is to collect the judgment amount. One of the most popular ways to collect on a judgment is to issue a garnishment. A garnishment is a court order, directed to your employer, to hold money out of your paycheck and pay it to your creditor. This means all the hard work you do is rewarded with fewer dollars, and that can cause you to get off track with your monthly expenses. But there are things you can do to stop a garnishment, and one of those is to file for bankruptcy.
If this sounds like something you would consider, you might be wondering how your judgment creditors know to stop garnishing your wages once you file for bankruptcy. The process is actually quite simple, in that the instant you file a bankruptcy case your lenders have to stop all collection activity. And, this includes a pending garnishment. Here is what you can expect once your case is filed:
• The automatic stay will go into effect immediately, and it is against the law for a creditor to continue with collection efforts or engage in litigation against you once the automatic stay is in place.
• Every creditor you listed when you filed your case will receive notice of your filing from the Court. This notice is what prompts the creditor to stop their efforts.
• You will also be given the filing information about your case, and can provide that directly to any lender who is garnishing your wages.
• Your attorney will also have access to your case data, and can provide that to your lenders or their attorneys, so any active garnishment can be stopped.
Once you have your entire paycheck in your hands, you are better able to pay your bills. And, depending on the type of bankruptcy you file, you might not have to pay your credit cards and other unsecured debt any longer. Eliminating these payments, along with receiving a full paycheck, will increase your bank balance and allow you to get back on top of your debts. If you are having a hard time making it from paycheck to paycheck, or your wages are being garnished for a debt, call us for help. We will talk to you about your options, and help you make a choice that works for you.
If your wages are being garnished and you are considering filing bankruptcy to help eliminate debt, contact us at www.DsouzaLegalGroup.com.