Wage Garnishment

If you fall behind on your debts, your creditors might sue you and try to garnish your wages. This can make it impossible for you to pay other bills, or even pay your rent or mortgage. Should you find yourself in this situation, filing for Chapter 7 or Chapter 13 bankruptcy may be the best option for you. Contact Shulman Law Offices in San Jose, CA, and attorney Ike Shulman will help you find a way out.

What You Need to Know

Outstanding Debts
If you have unpaid debts or are behind on payments, creditors may try to collect these debts by garnishing your wages.

Money Judgment
Before credit card companies and other private creditors can garnish your wages, they must first file a lawsuit and obtain a money judgment. This judgment can then be turned into a court order.

Garnished Wages
After receiving such a court order, your employer will be required to withhold a part of your paycheck and send it to the creditor. If you don’t do anything about it, the wage garnishment will continue until your debt is paid in full.

Family standing outside house next to car

Tax Agency and Support Garnishments
Tax agencies, such as the IRS, and child and spousal support creditors are not required to file a lawsuit to obtain a wage garnishment

Using Bankruptcy to Stop Wage Garnishment

Many individuals find themselves behind on their debts, with no way to catch up. If you are in this situation, Ike Shulman can explain to you how Chapter 7 or Chapter 13 bankruptcy can stop the threat of wage garnishments and resolve your financial problems.

Automatic Stay
As soon as you file for bankruptcy protection, an automatic stay on collections goes into effect. This legal shield can suspend most debt collection actions against you, even a foreclosure sale as well as lawsuits filed by your creditors.

Discharged Debt
Once your bankruptcy case is completed, all or a majority of your dischargeable debts will be eliminated. This also means that your creditors cannot garnish your wages anymore.

Exceptions 
Bankruptcy cannot discharge certain types of debt. Garnishment due to child and spousal support can continue during and after the bankruptcy process. Also, garnishments for tax debts which are not resolved through the bankruptcy can resume after the bankruptcy case is completed.

Make sure that bankruptcy will improve your situation before you file a case. Let Ike Shulman assess your financial picture, and he will help you make the right decision based on your needs. To schedule an appointment, give us a call or send us an email today.