If your take home pay is already
not enough to cover your expenses, imagine the stress that can be added to your
life if your wages are garnished. But that is exactly what can happen if you
fall far enough behind on your bills, and your creditor sues you for the past
due debt. Once a lawsuit to collect money is filed, the creditor will stop at
nothing to collect what is owed. And, if the case has reached judgment the most
likely next step is to garnish your wages. This can be a real hardship, but
there are some things you can do to take back control of where you money goes
each month.
Many times you can seek
an order from the Court that issued the garnishment, declaring you exempt from
being garnished. But this requires you to appear in Court and explain your
finances to a Judge, and argue persuasively for a refund of your money and/or
that the garnishment be released. This can be tricky, because the Court will
have discretion in what they order, and most times the creditor will get to
keep at least some of your money. Another option, which does not have as many
unknown factors, is to file for bankruptcy:
● When
a bankruptcy case is filed, all collection efforts have to stop. This includes
pending lawsuits as well as pending garnishments.
● Your
lenders are not only required to stop legal action, but they are also no longer
allowed to call you and ask for payment of their debt. So, if you have an
account that is behind but that has not yet been sued on, you can expect the
calls to stop the minute you file a bankruptcy case.
You work hard for your
money, and when you have bills to pay it is best to keep as much of it as you
can.
For help stopping a garnishment, or to keep the repossession man out of your front
yard with a hook up for your car, call us today.
For more information about
bankruptcy, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for
your convenience and can schedule a time to visit with you soon.
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