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What is wage garnishment and how can you prevent it?

On Behalf of | Sep 16, 2017 | Personal Bankruptcy

The phrase “wage garnishment” gets thrown around quite often when the topic of debt or bankruptcy comes up. This is because some creditors will pursue debts that you owe, and when you fail to pay, they take legal action. Wage garnishment is the legal process by which a creditor forces your employer to withhold a portion of your paycheck to ensure they get paid. Wage garnishment can cripple the financial lives of people who are already in a difficult financial position.

Remember that many people suffer from wage garnishment, or from the threat of such legal action. You are not alone if you are in either of these situations. You can also take proactive steps to prevent wage garnishment from happening, or from stopping it.

Filing for bankruptcy grants an “automatic stay.” What this “stay” does is it prevents creditors from garnishing your wages. Creditors are also barred from contacting you and they can’t seek out repayment for your debts. Filing for bankruptcy begins the formal legal process of repaying your debts, and a creditor’s attempts to collect from you personally falls outside of this process.

If you are having trouble dealing with your debts, don’t wait. Having the prospect of wage garnishment or harassing creditor calls hang over your head is stressful and unwanted. You should consult with an experienced bankruptcy attorney as soon as possible to ensure that your rights are upheld and that your bankruptcy proceeds as smoothly as it should.

Source: FindLaw, “Wage Garnishment,” Accessed Sept. 14, 2017

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