Facing wage garnishment can be very scary, and for a good reason. If a creditor is able to successfully petition the court to garnish your wages, a good chunk of your check could get taken away from you. In most cases, they can garnish 25% of your disposable income or any income that is greater than the hourly minimum wage times 30. While they can only take the lesser of the two calculations, both usually equal a substantial amount of money.
Fortunately, you have options, but you have to act quickly. Do not ignore a wage garnishment notice. These things can go through the court system fairly quickly, and if you don't show up, a judgment will be found against you. Instead, take one of these steps to stop the process.
Written Objection
If you have grounds for objecting the garnishment, you can do so in writing. Maybe you don't owe the money or maybe your income is exempt. Income from social security, disability, and child support is usually exempt, meaning they can't take anything from it. Your state may also allow other exemptions. For example, some states let you object if you provide more than 50 percent of the support for the dependents in your home.
Payment Arrangement
While some collectors will not enter into a payment arrangement with you once things have gotten to the point of garnishment, others will. You may be able to stop wage garnishment by setting up payment arrangements with the creditor. Often, your payments will be lower than you would expect to get garnished from your wages. For example, if they can legally take $100 a week from your check through garnishment, you may be able to set up a monthly payment of $200 a month, which will save you $200 every month.
Bankruptcy Proceedings
If you can't object or make a payment arrangement, you can stop all wage garnishments by filing bankruptcy. Once you file, creditors can no longer garnish your wages. The protection is immediate, and it may help you avoid garnishment altogether if you act quick enough. If you are granted a full discharge of the debt during bankruptcy, you will not have to pay the amount owed ever.
Wage garnishment is serious business. However, you don't have to simply allow wage garnishment to happen. There are several ways you can protect yourself from wage garnishment and save your paycheck for your family. Contact a bankruptcy attorney like Thomas A Blake for more information.
