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How personal bankruptcy may help to prevent wage garnishment

On Behalf of | Aug 13, 2020 | Uncategorized |

People in Santa Rosa, Ukiah and the nearby areas in California who are experiencing financial challenges will undoubtedly be concerned as to how they will address them. Wage garnishment can impact people from a range of demographics including young people just starting out, those with families who have found themselves with unexpected job loss and debt, and people of all ages who were confronted with sudden medical expenses. Bankruptcy might not be the first thought in a debtor’s mind, but it can be an effective strategy.

Understanding wage garnishment

If a person owes money, the creditor can go to court and request that there be wage garnishment. When it is granted, the employer will be told to take a certain amount of money out of the debtor’s paycheck and send it to the creditor. This is a common way for creditors to recover payment. Wages will be garnished until the debt is repaid. There could also be interest and fees.

Can wage garnishment be stopped?

There are ways to stop wage garnishment. Many people can negotiate with the creditor to formulate a workable payment plan based on their budget. The garnishment can be challenged on legal grounds. The court will consider the amount of damage it is doing to the person’s finances or if it was the wrong decision. It can be overturned. There is a time limit to challenge it. Finally, bankruptcy is a strategy that can clear debt through Chapter 7 or provide the debtor with a payment plan through Chapter 13.

Know the benefits of personal bankruptcy

Debtors may be reluctant to file for bankruptcy because they believe it shirks their responsibility to pay what they owe. However, the benefits of bankruptcy include stopping wage garnishment and other tactics creditors use to collect on debt; it will clear overwhelming debt that is difficult if not impossible to pay back; and it can help with retaining certain properties like a home. For assistance, it is wise to consult with experienced professionals who understand bankruptcy law.