Getting a letter stating that your wages are going to be garnished can be frustrating and scary. A wage garnishment is when debt collectors try to enforce their judgment against you. This is a tactic that debt collectors use to get people to pay outstanding debt. When this happens, the creditor will send a letter to a debtor’s employer telling them that they want the employer to withhold wages. Once the wages are withheld, the amount is sent to the creditor.
How Much Of My Wages Can Be Garnished?
There are limitations on how much a creditor can garnish wages. Under Federal Law, a garnishment can’t be more than 25% of your disposable income or the amount by which you take-home exceeds 30 times the federal minimum wage.
For debt collectors to take money out of your account, they must have a judgment to enforce. This means that they must have gone to court and sued you to get this judgment. Many people are surprised to learn that judgments can last up to 20 years. Therefore, if you are being garnished, and don’t remember going to court, the creditor could have gotten this judgment years ago.
How Can I Stop a Wage Garnishment?
A wage garnishment can be immediately stopped by filing for bankruptcy. When you file for bankruptcy, an automatic stay goes into place. This means that all creditors must cease any collection efforts. To file a bankruptcy, you can speak with a bankruptcy lawyer about the options that you may have to stop the garnishment. It is imperative that you speak to someone quickly to see if the garnishment can be stopped before they take your wages.
Keep in mind, that ignoring a lawsuit will not help either. When you ignore a lawsuit, the creditor will get a default judgment against you. When this happens, the creditor will be able to enforce the judgment and notify your employer of the garnishment.
How Can Filing for Bankruptcy Stop a Garnishment?
If you don’t have the means to pay for the garnishment and your expenses exceed your income, Chapter 7 may be an option to stop the garnishment. In a Chapter 7 bankruptcy, your debts are wiped out completely. This means that you can get a fresh start.
On the other hand, if you have too much disposable income, then you may want to consider filing for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy, you can repay your debts over a 3-5 year repayment plan.
In both Chapter 7 bankruptcy and Chapter 13 bankruptcy, you can stop a garnishment. The trick is to get the petition filed as soon as possible.
What Types of Garnishments Does Bankruptcy Not Protect?
Keep in mind there are certain types of garnishments that may have to be paid back even if you file for bankruptcy. Certain tax debts and child support arrears may have to be paid back even if you file for bankruptcy. If these are the types of garnishments that you have against you, it may be best to speak with a bankruptcy lawyer about what options you may have. 
Speak with a Bankruptcy Lawyer
If you have received a letter that your wages are being garnished, then it may be time to get in contact with a bankruptcy lawyer. Karra L. Kingston Esq, serves both New York and New Jersey. Karra is committed to helping individual’s get out of debt and stop any wage garnishment issues.