Wage garnishment is when a creditor receives a court order to have a portion of your paycheck go directly to your past-due accounts. This extreme measure is generally only taken if the creditor believes it’s improbable that you’ll be able to pay your debts otherwise. If you’re in this situation, you should consider filing for bankruptcy.
Merely submitting a petition to the court will trigger the automatic stay, which will freeze most current wage garnishment. Additionally, completing the legal process can result in the discharge of the debts that led to the court order. Speak with a seasoned legal professional for more information about bankruptcy and wage garnishment in Orange Park.
Understanding Wage Garnishments
If your creditors are pursuing wage garnishments, it means they have already taken steps to collect the money you owe them. In most situations, a wage garnishment can only result from a court order that granting the creditor permission to obtain funds from your paycheck. Typical examples of debts that can lead to court-ordered wage garnishment include personal loans, credit card bills, or past-due rent payments.
However, it is also possible for wage garnishment to occur without a court order. Debts due to a failure to pay child support, falling behind on taxes, or defaulting on student loan payments can all lead to an automatic garnishment. If you have questions about what can lead to wage garnishment, talk to a local bankruptcy attorney.
Stopping Creditors from Withholding Your Income
When you petition for bankruptcy, the court will impose an automatic stay on your creditors’ collection efforts, allowing you to manage your debts in a more controlled, less overwhelming environment.
According to 11 United States Code § 362, this stay applies to all outstanding debts, including those involving wage garnishment. A lawyer in Orange Park can provide further explanation about how bankruptcy ceases wage garnishment.
Will Wage Garnishment Continue After Bankruptcy in Orange Park?
The primary goal of a bankruptcy case is to get rid of most, if not all, of your debt. If the court discharges the debts that initially led to the wage garnishment, those creditors will not be able to continue withholding your income. The court may discharge debts such as overdue mortgage payments, credit card debts, medical bills, and personal loans.
Unfortunately, non-dischargeable debts are also exempt from discharge when in the wage garnishment phase. Federal bankruptcy law specifically prohibits the expulsion of tax debt, overdue support for children, and in most cases, student loans. Still, participating in the bankruptcy process may offer an opportunity for refinancing that makes timely payments more likely in the future. Speak with your attorney to find out which types of wage garnishments a bankruptcy petition can stop.
Contact Us to Discuss Bankruptcy and Wage Garnishment in Orange Park
Forfeiting a percentage of your income every week due to a wage garnishment order can be a significant financial stressor. Fortunately, you can stop your wage garnishments by petitioning for bankruptcy. Contact Parker & DuFresne, P.A. today to discuss bankruptcy and wage garnishment in Orange Park. Our attorneys can help you protect your rights to your hard-earned income.