stop wage garnishment

One day you go to work and discover that your paycheck is being garnished for a debt you owe. This happens to people every day. In addition to all the problems in life, now you are worried about how you are going to pay your mortgage, the electricity bill or even how you are going to buy food. When people are experiencing the above problems associated with having a wage garnishment, usually the first question they ask is, “how can I put an end to this?” The answer in many cases is that you will need the help of a qualified attorney. First, though, it helps to understand how repossessions happen in the first place.

The creditor must file a lawsuit

For a garnishment to take place, a creditor must have filed a lawsuit against a debtor and obtained a judgment. Garnishes usually take two forms. Once a judgment is entered, the creditor has the option of garnishing wages or encumbering a bank account (ie, freezing a bank account). The creditor must choose and cannot exercise both options at the same time.

Fortunately, there are ways to stop a wage garnishment or bank garnishment. Options to stop a foreclosure include filing for bankruptcy, but may include other methods. If creditors threaten to garnish wages or freeze a bank account without first obtaining a judgment against you, the creditor has violated consumer protection laws, including but not limited to the Fair Debt Protection Act. If a creditor has threatened to garnish wages or freeze your bank account without first obtaining a judgment, call a consumer protection attorney to discuss your rights and what steps you should take.

Garnished Wages / Bank Account Garnishment

Of the two forms of garnishment, most people experience wage garnishment. Most state codes limit the amount of wages that can be garnished based on a person’s annual income. Generally, twenty-five percent of net earnings per pay period may be garnished until the wage garnishment limit is reached.

When a creditor chooses to garnish a bank account instead of garnishing your wages, your bank must hold the funds for a period of time, including any ongoing direct deposits. After the time period expires, the funds are turned over to the bailiff for transfer to the court clerk. After the clerk of court has received the funds, the creditor must file a Motion to Condemn Funds with the clerk of court to receive the money. If the amount released to the creditor exceeds the judgment amount, the debtor will receive any excess leveraged funds.

During the lien period, a debtor cannot access their bank account to withdraw funds. It is recommended that the debtor discontinue any automatic or direct deposit of paychecks or other sources. It is also advisable to stop all automatic withdrawals from the bank account during the lien period. Continued automatic withdrawals, in addition to the funds collected, can cause significant bank charges and overdraft fees.

Stop the garnishment or lien

Stopping a wage garnishment can be a long and rocky road. Filing a Chapter 7 or Chapter 13 bankruptcy stops all liens and liens. This is because the Bankruptcy Code 11 USC 362(a) states that once a bankruptcy is filed, an automatic stay is activated that restricts all creditors from any collection activity.

If only it were that easy.

Usually, even after filing bankruptcy, it will take a week to a month or more to stop a foreclosure. This is because various parts have to work together. These parties include, but are not limited to, the following: your bankruptcy attorney; the clerk of the court where the judgment was handed down; the sheriff’s office in the county where the lien was served; the bank or payroll department; the bankruptcy trustee; and the creditor’s attorney. Immediately after your bankruptcy attorney files your bankruptcy filing, you must send a Notice of Bankruptcy to all parties, including the sheriff’s office. The sheriff is supposed to immediately notify your employer or the bank where the money is being collected and let them know to stop taking the money and release any withheld wages or money immediately. The payroll department, whether local or out of state, can also influence how long it takes to stop a garnishment. Also, each county clerk’s office and sheriff’s office handles liens differently. Problems do come up and they tend to come up often.

As you can see, there are numerous moving parts to obtaining a release from liens and liens. It is important that you work with an experienced bankruptcy attorney who has an efficient and effective method of dealing with liens and liens.

How to get your money back

Finally, there is the question of whether the garnished funds can be recovered and returned to the customer after bankruptcy has been filed. One determining factor is how much money was seized through the embargo. The amount of funds that can be claimed as exempt decides how much can be returned to you.

This, of course, adds an extra step to the equation.

Once the lien is stopped, your attorney must draft and have the bankruptcy trustee sign a motion to release funds. You will need to be patient and understand that it takes time for everyone to do what needs to be done.