If a creditor has issued a wage garnishment to repay a debt, you need legal advice from a bankruptcy attorney. Wage garnishment can lead to significant financial hardship for many people, as they often receive only part of the paycheck they were counting on to pay their bills. However, people in debt may not realize that they have other options besides allowing the garnishment to continue. If your wages are being garnished, it’s worth scheduling a free initial consultation with a local Oklahoma City bankruptcy lawyer to learn about your options.
Wage Garnishment Basics
Wage garnishment occurs when a creditor gets a court order requiring an employer to withhold a portion of an employee’s wages and send those wages to the creditor. The court order legally requires the employer to pay the creditor. To obtain the court order, the creditor must sue the debtor in court and obtain a judgment stating the amount the debtor owes the creditor.
If your wages are currently being garnished, you should have received notice of the lawsuit and the judgment against you, identifying the creditor and the amount overdue. To explore your options for debt relief, we recommend speaking with a bankruptcy attorney and bringing the information about your garnishment to their attention. If you’ve recently received notice of a creditor lawsuit, please get in touch with a lawyer right away. You only have a short time to respond to the lawsuit. Your lawyer can advise you on your rights, help you properly respond to the lawsuit, and potentially avoid wage garnishment altogether.
The Law Protects You From Being Fired for Wage Garnishment
There’s no doubt that wage garnishment can feel extremely embarrassing. Employees don’t want their employers to know that they’re badly in debt. It can feel extremely intrusive that a creditor is allowed to tell your employer that you’re in debt, even more so if it’s something like unpaid child support. You might worry that your employer will fire you when they find out about the wage garnishment order. Fortunately, the Consumer Credit Protection Act (CCPA) prohibits employers from firing or discharging employees whose earnings have been garnished for any one debt.
How to Stop Wage Garnishment
If you’re facing a creditor lawsuit or are already having wages garnished, you have options for debt relief. For many people, filing for bankruptcy offers much-needed breathing room when facing significant debt. The bankruptcy court imposes an “automatic stay” (basically a stop collections order) that keeps creditors from trying to collect on debts while you’re going through the bankruptcy process. The stay puts a halt to creditor lawsuits, garnishments, and other collection efforts. For others, options like debt settlement with the assistance of an attorney better suit their needs. If you’re in the Oklahoma City metropolitan area and want to explore your debt relief options, reach out to our team today.
Frequently Asked Questions
Can a creditor garnish all of my wages?
No. The CCPA prohibits garnishment of all your wages. Up to 50% of wages can be garnished for child support. Garnishment for other debts is limited to the lesser of 25% of your wages or an amount calculated based on what you actually earn compared to the federal minimum wage. If you believe that your wages are being garnished incorrectly in violation of the CCPA, contact an attorney for legal advice.
Can I tell my employer not to garnish my wages?
No. Your employer must follow a legally binding court order requiring them to make the garnishment and turn the wages over to the creditor. If wage garnishment has caused you financial strain, consider scheduling a consultation with a local bankruptcy lawyer for help.
Will filing for bankruptcy stop my wage garnishment?
Yes. Once the court imposes the automatic stay, creditors have to stop their collection efforts. Your wage garnishment should stop, giving you the chance to assess your financial situation. In bankruptcy, some of your debts may be discharged. Depending on the type of bankruptcy you file for, you may have a monthly payment plan that pays back some or all of your creditors. The creditor who was garnishing your wages may be paid back, the debt may be discharged, or you may still owe the creditor after bankruptcy, but your other debts may be resolved. Talk to an attorney for questions about your individual finances.
Don’t Let Debt Ruin Your Life. Get Legal Help Today
If a creditor has been garnishing your wages, you need trustworthy legal advice about your debt relief options. Our bankruptcy lawyers have been helping Oklahoma City metro area clients get the fresh starts they need for more than 29 years. Reach out to Chris Mudd & Associates PLLC to get started with a free initial consultation focused on facing and overcoming challenges. Text us or fill out our contact form today so we can help you get your life back in order.