Why is Wage Garnishment Difficult to Stop

When you’re struggling with debt, wage garnishment can feel like a punch to the gut. It’s a legal process where a portion of your earnings is withheld to pay off creditors. This can relate to credit card debts, taxes, judgments, and even student loans. However, did you know that filing for bankruptcy can help stop wage garnishment? This article will explore how the process works at the Liviakis Law Firm.

Understanding Wage Garnishment

Wage garnishment is often a last resort for creditors. When you default on your debts, your creditors can obtain a court order to garnish your wages. This means they can legally seize a portion of your paycheck until the debt is paid. It can apply for various types of debts such as credit card debts, unpaid taxes, court judgments, and student loans.

The Role of Bankruptcy in Stopping Wage Garnishment

Filing for bankruptcy can provide immediate relief from wage garnishment. When you file for bankruptcy, an automatic stay is put in place. This order prevents creditors from collecting debts. As such, wage garnishment is stopped as soon as the bankruptcy filing is made.

It’s important to note that the type of bankruptcy you file can impact the outcome. Chapter 7 bankruptcy can wipe out your debts, effectively stopping wage garnishment. Meanwhile, Chapter 13 bankruptcy reorganizes your debts into a manageable payment plan, which can also prevent future wage garnishment.

Garnishment for Different Types of Debts

Let’s delve into how bankruptcy affects garnishment for different types of debts:

• Credit Card Debts: Filing for bankruptcy can effectively stop wage garnishment for credit card debts. These debts are usually dischargeable in bankruptcy.
• Taxes: While tax debts are often non-dischargeable, bankruptcy may provide a temporary halt to wage garnishment for taxes. It’s essential to seek professional advice for this complex issue.
• Judgments: If a creditor has obtained a judgment against you, wage garnishment can be stopped by filing for bankruptcy. The automatic stay prevents the enforcement of judgments.
• Student Loans: While student loans are typically non-dischargeable, filing for bankruptcy can temporarily stop wage garnishment for these debts.

Seeking Legal Assistance

Dealing with wage garnishment can be stressful and overwhelming. However, you don’t have to navigate this alone. The attorneys at Liviakis Law Firm are committed to helping you understand your options and guiding you through the bankruptcy process. We strive to provide a fresh start to those burdened by debt, and we’re just a phone call away at 916 459 2364.

Bankruptcy is a powerful tool that can provide relief from wage garnishment. It’s a legal right designed to help individuals regain control of their financial situation. Remember, the first step towards resolving your financial troubles is understanding your options and taking action. Let the Liviakis Law Firm guide you on the path to financial recovery.