Can wage garnishment be placed on bankruptcy
Can wage garnishment be placed on bankruptcy
The simple answer will be no. But we will have to go in to the details of this topic to understand the relationship between the wage garnishment procedure and the bankruptcy. The wage garnishment procedure means that your creditor is allowed to take away your wages as the repayment money. This is always the last solution available with the creditors. They have to first make reconciliation efforts. It is better to approach the creditors to avoid the wage garnishing procedure in the first place. There is legal procedure to go through before the wage garnishment procedure is ordered by the court. The creditor has to go through the legal procedure. In this legal procedure you are given chance to defend your legal position in the court of law. It is necessary to understand that time is the most important commodity here. You have to calculate very objectively, what is your income position. You can apply for the bankruptcy and this will automatically stop the proceedings in the wage garnishment law. Many lawyers offer applying for the bankruptcy as the solution to the wage garnishment procedure. There is no legal way of stopping the wage garnishment procedure in the federal and state wage garnishment acts. This means in other words that if the wage garnishment procedure starts it can not be stopped. You will have to pay the entire amount stipulated in the court order. It is necessary to consult your lawyer the moment you feel that the wage garnishment procedure can be started against you. There are pros and cons involved in applying for the bankruptcy. It is true that by the wage garnishment procedure will have to be stopped, if you have applied for the bankruptcy. But the decision to do so will definitely differ from case o case. There is no generalized answer to this question: shall I apply for the bankruptcy to avoid the wage garnishing procedure? There can be two indicators. First is that it is possible to stop the wage garnishing procedure using the weapon of applying for bankruptcy. The second point is that there are certain time limitations involved, so consult your lawyer before the creditor initiates the legal procedure, to get maximum time in your hand to resolve this issue. If you just ignore the notice given by the creditors then the creditor can get the ex party judgment, which can be very fast and you may find that you have no time left for applying for bankruptcy. The legal procedure for wage garnishment is used as the time delaying tactics by the lawyers till the action of applying for the bankruptcy goes to logical end.