Up to 25% of Your Income Could Be Deducted from Your Pay
When you take out a loan, apply for a credit card or in any other way borrow money, you agree to allow yourself to be held liable for repayment of the money. When the debt is secured, such as a car loan or a home mortgage, the lender has the recourse of being able to repossess the collateral or to foreclose on the loan. For unsecured debts, the most common course of action for pursuing repayment is to sue in court for a garnishment of the debtor's wages. Wage garnishment, which is also referred to as “wage attachment,” allows the creditor or debt collector to pull up to 25% of the debtor's income directly from your paycheck.
The order to garnish wages does not mean that you will have the duty to take the garnishment out of your bank account and send it in. Instead, your employer will receive a copy of the order and will then be required to make the deduction during the payroll process. In the event that you are the primary income earner for your family and you make less than $750 per week, you can file an affidavit with the court to request a family exemption that will stop the wage garnishment.
How a Jacksonville Bankruptcy Attorney Can Help
Wage garnishment can have a crippling effect on the already-strained finances of a person in debt. After all, you are only being threatened with garnishment because you have already been unable to afford your loan payments, and if your wages are further reduced, you may find it difficult or even impossible to support yourself and your family. Fortunately, there is one sweeping action you can take to immediately stop wage garnishment. You can come to The Law Offices of Justin McMurray, P.A., where a Jacksonville bankruptcy lawyer is ready to help you move forward with a petition to file under Chapter 7 or Chapter 13.
As soon as you file your petition, the bankruptcy court will issue an injunction known as an automatic stay, which will prevent any further creditor action against you. This includes protection against wage garnishment, as well as repossession and foreclosure. The automatic stay will not affect wage garnishment for certain debts, such as unpaid child support, but it can protect you from a wide variety of other types of garnishments and provide you with the peace of mind you deserve.