Sometimes, depending on the debt you have, creditors may be able to have your wages garnished. This creates even more financial difficulty by not allowing you to determine how much you can afford to pay off. Although one debt may start going down, your total debt is increasing due to the loss of wages.
Have you or someone you love had wages garnished due to debt? If so, our bankruptcy lawyers can help you get back on your feet financially. Contact a bankruptcy law attorney in your area to today to learn more about your options.
Possible debts resulting in wage garnishment include:
Wage garnishment is when your employer is required to withhold a portion of your paycheck in order to make payment towards the debt. Wage garnishments are applied after your creditor gets a judgment against you for the amount of money you owe. Common debts that result in wage garnishment include child support, back taxes, and student loans. There are limits placed on how much can be taken out of a week’s pay, but that percentage may vary based on the type of debt being repaid. Additionally, these limits may not apply in certain situations such as the payment of back taxes.
The upside of wage garnishment is that you can not legally be fired for having your wages garnished. However, you may feel embarrassed having your employer knows you are having financial difficulties. You may be passed over for promotions if your employer takes the garnishment into account when considering you as an applicant. Financially, it may cause additional stress since garnishments decrease your disposable income. A bankruptcy or bankruptcy alternative may enable you to take care of the debt without having your wages garnished.
If you or someone you love has had wages garnished, our bankruptcy law attorneys can help you eliminate your debt and regain control over your paycheck. Contact a bankruptcy lawyer in your area to learn more about your options and get started on the right track.
Did you know?
In Cleveland, Ohio, wage garnishments rose 30% from 2008 to 2009.
Wage garnishments are up 55% in Atlanta since 2004, and up 121% in Phoenix since 2005.