Bankruptcy and Wage Garnishment
Dothan Legal Team helping you keep your paycheck in Cottonwood, Rehobeth, Taylor, Columbia, Headland, or anywhere else in Alabama
One major method that creditors employ to collect their debts is wage garnishment. Garnishment usually happens when a court orders that the employer of a debtor take a percentage of the debtor’s paycheck and turn it over to the creditors before paying the debtor. Bank accounts can also be garnished if creditors get a court order to take money straight from a debtor’s checking or savings account. You can probably imagine the complications that result from such intrusions. When a debtor files bankruptcy, the automatic stay freezes all garnishments until the bankruptcy proceeding is resolved. Again, a bankruptcy filing can provide temporary relief, often after things have gone too far. The best way to prevent a garnishment is to stop it before it happens.
If a creditor is threatening to garnish your wages, then you need to consult an experienced debt relief attorney and understand your options. An important part of the services our firm offers involve matters handled outside of the bankruptcy process. If we can help you prioritize your payments and negotiate on your behalf with creditors, without having to file for bankruptcy, sometimes this is the best route to take. On the other hand, if it appears that a bankruptcy filing will be the better option, the automatic stay will provide temporary relief from collection activities such as the garnishment action. In fact, in many cases the underlying debt that caused the garnishment is discharged in a Chapter 7 bankruptcy; thus, unless the debt involved student loans, child support payments, or other non-dischargeable debts, the garnishment very well may never resume.
If you have been threatened with wage or bank account garnishment by a creditor, or if your wages or accounts are already being garnished and you want it to stop, email us or call the Dothan Legal Team at Parkman White, LLP at 334-792-1900 today for a consultation.