Wage Garnishment Law: Can I Stop It?

The federal wage garnishment law provides creditors with a way to obtain the money their owed out of people’s employment earnings. Typically, creditors such as credit card companies, lenders or individuals sue. When the judge agrees with the creditors and find in their favor, creditors are allowed to contact people’s employers and garnish wages. Of course, creditors do this because they are positive they’ll get paid because no one will quit their job to avoid paying. However, creditors may not know there are other ways for people to stop wage garnishments.

Contact Creditors

In some cases creditors will agree to make payment arrangements with individuals rather than going through with the wage garnishments. If the creditors agree, people must make sure that they pay all the money that’s owed. Any missed payments can result in creditors pursing wage garnishments.

Protest The Wage Garnishments

Wage garnishments depend on disposable income. Creditors can take up to 25 percent of people paychecks—if they don’t have other garnishments such as child support or alimony being withdrawn. However, individuals can petition the court to stop the wage garnishment if they can prove hardship. Of course, they will need evidence such as medical, utility or rent bills. At the hearing, the individual must prove that they need the money the creditors will take. The judge will rule to exempt people from the wage garnishments or keep them in place.

File For Bankruptcy

Personal bankruptcy is a legal process where individuals eliminate or repay their debts. In chapter 7, people are allowed to have their debt discharged, or eliminated. While in chapter 13 people agree to repayment plans which pay off their debt in 36 to 60 months. The bankruptcy options also have legal protection. For instance, both chapters prohibit all creditors from starting or continuing wage garnishment because an automatic stay. The automatic stay is implemented once the bankruptcy cases are filed and remains until the cases are discharged or dismissed. Dismissals are typically the result of non-payment or not following bankruptcy rules like undergoing credit counseling. If the cases are dismissed, creditors are able to pursue wage garnishments.

Seek Legal Help Regarding Wage Garnishments

People facing wage garnishments or currently having money taken out of their paychecks, should contact an attorney. The attorney can determine which option is best for people to pursue.

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