Can Wage Garnishments Be Stopped?

In the State of California, 25% of your net paycheck can be cut. For a lot of people, a 25% cut can wreak havoc on their finances. However, for creditors, wage garnishments are one of the most effective ways to get paid since there are only a few ways to stop wage garnishments.

One alternative to wage garnishments is to file for bankruptcy. Filing a Chapter 7 bankruptcy will wipe out most debts. In addition, the debtor will feel an immediate relief once the "automatic stay" is put into place. The automatic stay will temporarily stop all debt collection activity and wage garnishments so you can breathe a little. However certain debts cannot be included in bankruptcy such as, child support, alimony, student loans, and taxes under three years old, court ordered fines and victim restitution.

Keep in mind that due to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, people who earn more than $60,000 per year may not qualify for a Chapter 7 bankruptcy. They may have to file a Chapter 13 debt reorganization bankruptcy instead. In which case, they will still be able to benefit from the automatic stay, even though their debt will be paid off in 3 to 5 years.

Generally speaking, people who's wages are garnished will usually have to pay the debt off in full, unless they make the final decision to file for bankruptcy. If the debt is for an unsecured debt, medical bill or personal loan, it can be discharged through a Chapter 7 bankruptcy.

Bankruptcy Attorney in Irvine

If your wages are being garnished, you may want to find out if bankruptcy is an option for you. An Irvine bankruptcy lawyer from Peter Rasla & Associates, P.L.C. can assist you with any questions that you might have. We are more than happy to sit down with you and review the specifics of your case in order to help you determine if bankruptcy is the right choice for your unique financial situation.

Contact an Irvine Bankruptcy Attorney from our firm today for a free case evaluation.