Can I Be Sued or Garnished While I Am in a Bankruptcy Plan?
Whether you are applying for Chapter 7 or Chapter 13 bankruptcy, an automatic stay will be in effect against creditors who are attempting to seize your home or repossess your property. The automatic stay is a court order which prohibits creditors from suing you or garnishing your wages. This protection allows you to assess your financial picture, giving you the necessary space to determine what course of action is right for you.
At Reed Law Firm, P.A., our Columbia bankruptcy attorneys have helped thousands of individuals have a fresh start. Depending on the type of bankruptcy you qualify for, you could have the majority of your debts discharged, or you may be set up with a repayment plan. If you are considering filing for bankruptcy, do not hesitate to contact our team of debt relief lawyers.
When Can My Wages Be Garnished?
If you owe money to a creditor, your wages could be garnished to pay debts such as medical bills. Garnishment stipulates what percentage of a worker’s earnings must be withheld in payment of a debt. Wage garnishment can apply if you owe federal or state taxes, student loans, alimony, or child support, to name a few. However, there are certain limitations per pay period, regardless of the number of garnishment orders received by the employer. According to federal law, if your disposable earnings (amount made after deductions) is $217.50 or less per week, then no garnishment can take place.
An Automatic Stay: Protection Against Creditors
If you are being sued by a creditor or your wages are being garnished, filing for bankruptcy can stop all proceedings. The moment you file for bankruptcy, an automatic stay will apply, pausing all collection efforts. During an automatic stay, property repossession and foreclosure proceedings must be halted.
However, an automatic stay will not provide a safeguard against all creditors. Bankruptcy Code §362 specifies when an automatic stay will not apply, which will include child support services, and alimony during divorce. If you are unsure if bankruptcy is the right move for you, it is important that you speak with a debt relief attorney to review legal alternatives.
Bankruptcy Requires Compassionate and Knowledgeable Counsel
Life has unexpected twists and turns, meaning that bankruptcy can impact anyone. If you are considering bankruptcy, know that you are not alone. In 2023, 452,990 people filed bankruptcy petitions, an increase of 16.8% from the previous year. For whatever reason, you find yourself in debt, and you want dedicated and experienced counsel to help you each step of the way.
At Reed Law Firm, P.A., our Columbia, SC bankruptcy lawyers want you to feel in control of your financial future. If a creditor has initiated legal action or wage garnishment, our debt relief attorneys want to hear from you. When you work with our firm, our dedicated attorneys will sit down with you to evaluate the entirety of your assets and debts. We will answer any questions you have and give our recommendation on what type of debt relief is best for you. Why wait another moment? Contact us today to begin your journey of financial recovery.
Drowning in Debt? Speak with Our Columbia Bankruptcy Attorneys
Debt can be all-consuming, inhibiting you from enjoying all that life has to offer. For two decades, Attorney Eric Reed has helped individuals regain their financial independence, giving them a second chance. If you or a loved one are experiencing financial hardship, our Columbia bankruptcy lawyers would like to hear from you. To learn more or to schedule your free consultation, contact Reed Law Firm, P.A., by filling out our online contact form or calling 803-726-4888.
