If you are facing wage garnishment, you understand how difficult it can be to make ends meet while losing a portion of your paycheck to a creditor. It can also be very embarrassing to have your employer approached by a creditor to garnish your wages. Wage garnishment typically occurs when a creditor gets an order against you in court that permits the creditor to go directly to your employer and require your employer to withhold a portion of your pay, which ultimately gets turned over to the creditor. This makes getting out of debt that much more difficult. Fortunately, Chapter 13 bankruptcy may be able to help.
Many people use Chapter 13 bankruptcy as a means to stop wage garnishment and set up a plan to feasibly tackle the outstanding debt. Chapter 13 bankruptcy can also be used after a creditor has obtained a judgment against you but before it approaches your employer to garnish your wages. To learn more, call our office today at (727) 344-0123 to speak with a St. Petersburg Chapter 13 bankruptcy lawyer.
The Immediate Effect of Filing Chapter 13 Bankruptcy on Wage Garnishment
Immediately upon filing a Chapter 13 bankruptcy, an automatic stay is put in place that prevents any creditors or debt collectors from seeking repayment from you until the bankruptcy court lifts the stay. As a result, under the automatic stay, wage garnishment is stopped. Your attorney can provide a copy of your Chapter 13 bankruptcy petition to your employer to notify your employer that it should no longer be withholding any of your pay.
The Long-Term Effect of Filing Chapter 13 Bankruptcy on Wage Garnishment
In the long-term, the underlying debt that is causing the wage garnishment can be addressed in the Chapter 13 bankruptcy and repaid under terms that are more advantageous to you. Instead of losing a portion of your pay automatically, you can strategically address debt and pay it according to the Chapter 13 bankruptcy plan. Your attorney will propose a Chapter 13 bankruptcy plan that is suitable to your income so that you are not overburdened with debt payments.
Some Wage Garnishment is Not Stopped by the Automatic Stay
Unfortunately, not all types of wage garnishment can be stopped with a Chapter 13 bankruptcy. Wage garnishment due to default on Federal student loans, missed child support and alimony payments, and unpaid income tax debt cannot be stayed by filing a Chapter 13 bankruptcy. It is crucial to speak with a bankruptcy attorney at Berkowitz & Myer to determine whether your particular wage garnishment can be addressed with a Chapter 13 bankruptcy.
Call Us Today to Speak with a St. Petersburg Chapter 13 Attorney
Wage garnishment may be preventing you from catching up on your debt obligations, and if so, the attorneys at Berkowitz & Myer can assist you in filing a Chapter 13 bankruptcy to stop that wage garnishment and implement a plan to repay your debt on terms that are most suitable to you. Call the St. Petersburg law firm of Berkowitz & Myer today at (727) 344-0123 or contact us online to see if you can utilize Chapter 13 bankruptcy to stop your wage garnishment and get your finances back on track.