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Three Things You Should Understand If Your Wages Are Being Garnished Because Of Credit Debt

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If your wages are about to be garnished by one or more creditors for failure to make your payments on credit cards or other loans, you should not panic. But neither should you ignore the problem. There are a few things you should be aware of if you are in this situation.

The time to seek legal advice

The best time to contact an attorney is when you think you are about to be sued by one or more creditors. No creditor can garnish your wages without a court order, and you will know when this happens because you will receive a hand-delivered summons. If you have already received a summons, you should take it immediately to an attorney. They will be able to bring a halt to the process of wage garnishment. It may be the case that you never went to court, and in this case, your creditors will have won the judgment by default. Your wagers may have already been garnished. Although it may seem too late, you should consult with a wage garnishment attorney as soon as possible.

The garnishment of your paycheck will stop quickly

If your creditors are threatening to garnish your wages, or they are in the process of taking you to court, an attorney can put an immediate stop to the process by filing for bankruptcy. This will effectively put an end to the wage garnishment process. Your attorney may need to notify your creditors because there is usually a delay of a few days before your creditors are notified. Likewise, if you are already having money taken out of your check, your employer will be notified. This notification will take the form of a filing number.

The garnishment may be temporary or permanent

The halt on your wage garnishment will have a limited time. This is usually the time needed to process a bankruptcy. If your bankruptcy is denied by a judge, then the hold on the garnishment will start up again. However, an attorney will be able to determine the chances of a successful bankruptcy filing. There are also two types of bankruptcy for an individual. One will eliminate most of your debts, and the other will reorganize your debts. An attorney can examine your finances and determine if you qualify for bankruptcy, and which one is best for you.

Wage garnishment due to non-payment of debts can cripple your finances. But if this garnishment is due to excessive debt, you should contact a wage garnishment lawyer immediately. Whether you believe a summons is imminent, or you have already received a summons, or your wages have now been garnished, an attorney can often halt the process with a bankruptcy. Although the halt is temporary, it can become permanent with a bankruptcy.

Contact a firm like Havner Law Firm to learn more.