… debtors 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 …

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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 …

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… voluntarily. Right? Well, surprisingly many debtors do just that when they agree to “voluntary wage assignments.” A voluntary wage assignment is an agreement between a creditor and debtor that says the lender can deduct a certain amount of money from the debtor’s paycheck to repay a loan. Voluntary wage assignments are commonly used by payday lenders. Surprised? You shouldn’t be.  Payday lenders understand that the reason debtors use their “services” is because they are …

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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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… have 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 …

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… their paychecks. So now payday lenders are starting to use a collection tool called “voluntary wage assignment.” Voluntary wage assignment is where the borrower agrees to willingly have their employer deduct a specific amount of money from their paycheck to repay the payday lender. It’s similar to a garnishment with one major difference, the borrower agreed to it by signing a contract with the payday lender. Surprised? Don’t be, a voluntary wage assignment is now quickly becoming …

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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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… exactly how much money you want deduct from each paycheck.  The bankruptcy court will then give a wage deduction order to your employer who will deduct the ordered amount per your request. To find out more about your Chapter 13 bankruptcy repayment options speak with your Dallas-Fort Worth bankruptcy attorney.

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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 …

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… to effectively pay their debts and continue their current lifestyle. Furthermore, the lost wage levels may never be regained as experienced by the pilots in this article. For the pilots, they have worked six years at significantly reduced wages. Is that the future of workers today who are taking pay cuts to avoid job losses? What will happen to the overall quality of life for Americans if they are working at reduced wages for an extended period of time? Well, first off they are …

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… problems.  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 …

… so much debt that they can’t survive any longer now that they have suffered a job loss or wage decreases.  Mortgage payments, credit card debt and even medical debt are weighing down more and more Americans causing them to consider bankruptcy even in cases when they swore they would never file bankruptcy, no matter what.  Three of the main reasons that Americans are filing bankruptcy are:

Unmanageable debt.  During the boom, many debtors were under the impression that …