… if given the chance.  One of those powerful and yet damaging collections tools is the “wage garnishment.”  Many people who have eventually filed bankruptcy have done so either under the threat of or after a wage garnishment was

enforced.  Wage garnishments can send an already shaky financial house crumbling to the ground; but there are some things that you can do about it.

Don’t ignore creditor lawsuits.  If you receive notice that you are being sued, don’t just ignore …

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Millions of Americans who have suffered a job loss are at risk of a future wage garnishment.  Many debtors mistakenly handle the prospect of a wage garnishment by ignoring creditor calls and letters; but that’s a serious mistake.  Here are a few tips for stopping (or at least delaying) a wage garnishment:

Despite popular opinion, a wage garnishment does not start with a judgment granted to a creditor.  The road to wage garnishment begins with your first …

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… made any payments they may attempt to garnish your wages or bank account.

What Happens In A Garnishment?

Once the debt collector secures a court judgment against you he can use it to seize your wages or bank account.

In the case of wage garnishment, most states won’t allow the seizure of more than 25% of your wages. Also, certain types of income, such as SSI cannot be garnished. Speak to an attorney regarding what income is exempt from garnishment.

In the case of a bank …

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… sharply higher bankruptcy rates than neighboring states that prohibit or strictly limit wage garnishment.

The article said:

“After gathering millions of bankruptcy records from 2006 until now, the AP plotted the number of filings for each U.S. county in its Economic Stress Map – a geographic, chronological and visual depiction of economic misery based on unemployment, foreclosure and bankruptcy data.

While bankruptcy rates vary for many reasons, the five states that prohibit …

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… your wages or seize your bank accounts without warning.  Only bankruptcy can stop the garnishment or bank seizure order. If a creditor seizes your assets after you file bankruptcy, you have legal recourse and you may be able to get those assets back.

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Most people have at least passing knowledge of wage garnishment–the process of deducting money from an employee’s monetary compensation (including salary) as a result of a court order.  Fortunately for those who find themselves in the unfortunate position of having their wages garnished, these payments are limited by federal law to 25 percent of the employee’s disposable income.  Unfortunately, those payments will continue until the entire …

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… Most debtors are already teetering on the edge of bankruptcy when this happens.  Wage garnishment can be stopped with bankruptcy.

You may need to file bankruptcy if you are facing lawsuits from creditors. If creditors are considering filing a lawsuit against you, filing bankruptcy will stop them from proceeding.

You may file for bankruptcy if you owe a significant amount of back taxes and are unable to repay them.  Yes, some taxes are also eligible for …

… that creditors are often more willing to use strong arm tactics (foreclosure, lawsuits, wage garnishment etc.) than to wait patiently for debtors to find a new job or increase their income. Bankruptcy puts the brakes on creditor strong arm tactics giving debtors a chance to discharge debt or repay under reasonable terms.

Permanent lifestyle change.  Many debtors who were doing well during the financial boom are finding that their lifestyles changes are …

… which is used when you need bankruptcy fast to stop an imminent foreclosure, wage garnishment etc. Eventually all paperwork must be fully completed.

Once the bankruptcy petition arrives, the bankruptcy trustee will review the petition. If there are errors or mistakes, the bankruptcy case could be dismissed. Errors could include failing to take the debtor’s course or misstating your income or expenses, among other things. This is why it is important …

… the debtor in bankruptcy and also forbids the creditor from calling, writing, issuing a wage garnishment order, seizing the debtor’s bank account or assets, filing a lawsuit or filing foreclosure on the debtor’s home.  However, there are circumstances where a creditor will seek relief from the automatic stay.

A creditor will seek relief from an automatic stay in bankruptcy if the debtor does not have “sufficient” equity in the secured property or if the secured …

… chances of getting paid.

How It Works

A voluntary wage assignment works just like a wage garnishment, except that the debtor has agreed to it. If a debtor defaults on the payday loan, the lender can then garnish the debtor’s wages without going to court. Once a debtor defaults on their payday loan, the lender will send the debtor a notice informing them that they plan to implement the voluntary wage assignment (i.e. wage garnishment).  This usually happens 20 days before the wage …

… force creditors to return property that was already repossessed.

3.         Halts wage garnishment during the bankruptcy process.

4.         Puts an end to the foreclosure process and gives you a well-needed breathing space to catch up on payments.  Just knowing that you won’t immediately lose your home can benefit you in so many ways.

5.         Provides you the chance to dispute any claims from creditors that you believe or false or inflated in an effort to …