Stop Wage Garnishment in Chicago Today!
Is Your Paycheck Lower than Usual? Find Out the Truth and Stop Wage Garnishment
If you've been struggling to pay bills on time and have recently noticed a dip in earnings on your paycheck, watch out: Creditors could be garnishing your wages! After you discover who is garnishing your wages, the next question you need to ask yourself is; can you stop wage garnishment through bankruptcy?
After state and federal taxes are withdrawn from your paycheck, you are left with disposable earnings, which is up for grabs if you owe money to a creditor. The creditor may legally garnish a certain percentage of these disposable earnings, depending upon what you owe. To be clear, this amount is withheld by your employer rather than your creditor, but it's the creditor who initiated the process.
Below, we'll look at the process a bit more and show you how to stop wage garnishment.
How Can You Stop Wage Garnishment Through Bankruptcy?
If you find that a creditor is indeed garnishing your wages, you may be able to stop the garnishment and even get some of your garnished wages back by filing bankruptcy. Here's a bit more on how this works:
The Automatic Stay
When you file Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect that halts most collection activities by creditors (child support or alimony are a couple of exemptions). This means that wage garnishments are also stopped as long as the stay is in effect. The bankruptcy judge will only lift the automatic stay if the creditor has a valid reason for doing so.
However, the automatic stay ends in the following scenarios:
- When you receive a discharge
- When your case is dismissed without a discharge
- When the court lifts the stay
The creditor cannot resume garnishment to collect the debt after bankruptcy if you receive a discharge and the obligation for the wage garnishment (such as credit card debt) was included in the discharge. However, if your case gets dismissed without a discharge, the creditor can continue the wage garnishment after dismissal.
Even better, if certain conditions are met, you might be able to get back some of your wages even if they were garnished before you filed bankruptcy! You may be able to get back wages garnished within the 90-day period before your bankruptcy filing as long as they were over $600 and you have enough exemptions to cover them.
To find out more, contact an experienced Bankruptcy Attorney today!
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Need Help Combating Wage Garnishment in Illinois?
The bankruptcy lawyers at Suburban Legal Group PC are sensitive to the difficult time you may be facing and offer Chapter 7 and Chapter 13 Bankruptcy filing services to help you get out of debt. While bankruptcy has a lot of negative connotations attached to it, the fact remains that it's a common and successful tool to relieve the stress and financial gridlock of unmanageable debt. We offer reasonable fees for Illinois residents and we'll work hard to meet all your legal needs while filing for bankruptcy.
Our goal at Suburban Legal Group PC is to change your financial future. Request a Free Bankruptcy Filing Consultation Today.