One of the most effective ways a creditor can get paid is through wage garnishment. Generally, a creditor gets a court order which directs an employer to withhold a certain amount of their employee’s pay. The garnishment order is usually a very unpleasant surprise which arrives before payday.
If a wage garnishment takes more from your paycheck then you can afford to pay, considering your bankruptcy relief options is smart. Filing a bankruptcy case immediately stops garnishments through what is known as the “automatic stay.” For the majority of wage garnishments, the underlying debt will be discharged and the creditor will be unable to collect any more money from you during or after your case.
In addition, it may be possible to recover some of the money which has already been seized through a wage garnishment. The best way to determine what money you can recover is to contact an experienced bankruptcy attorney.
For those of you in Western North Carolina, I would be happy to explain your options during a free initial consultation.