Hiring an attorney can often add undue stress to an already fractious time. Bankruptcy cases are no different.
Bankruptcy can be scary. The thought of losing your home, car, and other possessions is certainly intimidating. And to add insult to injury, when considering bankruptcy, debt collectors can garnish your wages. Thankfully, many of the common misconceptions about bankruptcy are untrue. In fact, bankruptcy can significantly help those with overwhelming personal debt in many ways. One such way is protection from wage garnishment.
Here is a quick breakdown on bankruptcy and wage garnishment from David S. Clark, an experienced bankruptcy attorney in Opelika, Alabama.
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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What are wage garnishments?
According to the US Department of Labor, wage garnishment is “a legal procedure in which a person’s earnings are required by court order to be withheld by an employer for the payment of a debt such as child support.” This means that your pay goes to a creditor instead of you. Some common forms of garnishments can be child support, alimony, student loans, and income taxes.
Wage garnishments can be embarrassing, financially crippling, and difficult to stop. Some forms of wage garnishment can even take up to 50% or more of your wages. One of the few ways to effectively fight against wage garnishments is declaring bankruptcy.
Chapter 7 bankruptcy and wage garnishments
When you declare Chapter 7 bankruptcy, wage garnishments are stopped. IRS garnishments are also temporarily stopped. The automatic stay that is enacted upon declaration of Chapter 7 bankruptcy will temporarily halt all collections. This gives you a break from the financial stress that comes with wage garnishments. From there, law professionals can help you regain your financial footing and instill fiscally responsible habits.
Chapter 13 bankruptcy and wage garnishments
When you declare Chapter 13 bankruptcy, wage garnishments are also stopped. Much like declaring Chapter 7 bankruptcy, declaring Chapter 13 bankruptcy also issues an automatic stay that halts all collections. Stopping wage garnishments is one the most impactful ways that declaring bankruptcy helps those in overwhelming debt. Once wage garnishments have been halted, you have time to get your financial situation back to a manageable state.
Through the Chapter 7 and Chapter 13 bankruptcy processes, and with the help of legal professionals, regaining your financial freedom and getting back on your feet isn’t so far away. It will take hard work, commitment, and starting new financial habits, but it is absolutely possible to get back to a healthy place with your finances. The financial easement process of automatic stays, which halt wage garnishments, is only one such way that the bankruptcy process can help.
The Difference With David S. Clark
If you are looking for dedicated bankruptcy law professionals to help you with your financial hardships, look no further than the experienced David S. Clark. Our focused and successful legal team has a combined legal experience of over 25 years.
If you are an Auburn or Opelika, Alabama area resident in financial distress, let us serve you and help you get back on your feet. Contact us today to begin your journey back to financial freedom.
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.