If a creditor has filed a lawsuit and obtained a judgment against you, the creditor will likely pursue a garnishment against you. A garnishment is an effective collection tool because it allows the creditor to seize funds from your bank account and/or your paycheck.
Before a garnishment is commenced against you, the creditor must serve the garnishment paperwork on you and your bank or employer. The creditor is only permitted to seize your “disposable earnings,” which means that all of the mandatory deductions are taken out before the garnishment amount can be paid.
The law protects certain types of income such as your Social Security benefits, disability benefits, worker’s compensation awards, and other similar types of benefits.
If you have a collection lawsuit filed against you and/or a garnishment action already pending against you, it is time to meet with one of our debt relief attorneys. We can help you understand all of your options, including filing a personal bankruptcy case. As soon as you file your petition for bankruptcy, the automatic stay goes into effect. The stay prohibits creditors and collectors from taking any further collection activity against you.
When you file for bankruptcy protection, the collection lawsuit and/or the garnishment must stop. Depending upon the timing of your filing, this means that the creditor must have to refund the money garnished from you. You may also be able to discharge or eliminate the debt that is linked to the garnishment. This means that once you emerge from bankruptcy, the creditor cannot try to collect the discharged debt from you.
If you are considering filing a bankruptcy and you need help determining which type of filing would be best for you, contact Fitzgerald Campbell to schedule an appointment. We do not offer just one debt relief option, we don’t push you in one direction. If bankruptcy right for you, we will tell you. If it’s not, we will tell you that. If bankruptcy is your get-out-of-debt plan, it needs to be done right. It needs to be in the hands of experienced lawyers who have been there before. Contact us today!