Can Bankruptcy Stop Wage Garnishment?

by | Mar 22, 2013 | Lawyers

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Wage garnishment is a frightening concept but bankruptcy attorneys in Naperville may be able to help. When your paycheck is being garnished, you may find it difficult to have enough money to pay for daily living expenses. This can cause emotional distress and even affect your health. You shouldn’t wait too long before contacting a qualified bankruptcy attorney to find debt management solutions for wage garnishments.

Something that creditors do not want you to know is that you can effectively stop wage garnishments by filing for bankruptcy. Bankruptcy attorneys in Naperville can explain to you how the process works and all the steps for filing bankruptcy. Sometimes, you may have to complete a credit-counseling course before filing for bankruptcy. Once your bankruptcy case is filed, you can notify your employer and creditors with your case number. The creditors or your employer may require proof of the bankruptcy filing for verification purposes.

Letting the local sheriff know about your bankruptcy filing is also an important part in getting the wage garnishment stopped. The sheriff must receive notification from the creditor about your bankruptcy filing. The sheriff then lets your employer know to stop garnishing your wages. Once you have filed for bankruptcy, you should let your human resources department know that they can expect to be receiving notification of your bankruptcy filing.

What happens if there are garnishments taken from your paycheck after the bankruptcy has been filed? If there is a delay in processing the filing and additional wage garnishments are withheld from your paycheck, this money is protected. In most cases, the sheriff will mail this money back to your employer. The employer will then issue your funds to you in a future paycheck.

There are some things that you should know about wage garnishment. Creditors are only allowed to take a certain percentage of your wages in wage garnishments. In most cases, not more than 25 percent of your wages can be garnished. If the garnishment is for child support or federal or state income tax liability, 50 percent of your wages may be garnished. You do have recourse if you feel your rights have been violated. The United States Department of Labor, Wage and Hour Division will take complaints about wage garnishment violations.

Bankruptcy attorneys in Naperville know that going through a wage garnishment is difficult for you and your family and creates a great deal of stress. These attorneys have been trained in bankruptcy laws and will help you find a workable solution to your debt problems. The first step is to contact a bankruptcy attorney for a free consultation.

Bankruptcy attorneys in Naperville can help you stop wage garnishments and get back on your feet financially. Chicago Debt Solutions has 5 convenient metro area locations to serve you. Julie Trepeck is a skilled attorney with extensive experience and legal knowledge of bankruptcy laws. She can assist clients in all stages of debt problems and help them find a solution. For more information or to schedule your free debt solution consultation, you may visit the website.