With millions of Americans facing job losses and mounting credit card debt,
many people are choosing to ignore calls and letters from debt collectors.
Let's face it, when you're struggling to pay the basics (food
and shelter), who has any money or energy left for the debts you can't
pay off any time soon? But be forewarned, if collectors see that your
debt is languishing and you haven't made any payments, then they may
attempt to garnish your wages or bank account.
What Happens In A Garnishment?
Once the debt collector secures a court judgment against you, he can use
it to seize your wages or bank account. In the case of wage garnishment,
most states won't allow the seizure of more than 25% of your wages.
Also, certain types of income, such as SSI cannot be garnished. Speak
to a Dallas bankruptcy attorney and discuss your options regarding what
parts of your income are exempt from garnishment.
In the case of a bank account garnishment, all funds can be seized with
few exceptions as noted above. It is important to note that it is up to
the debtor to prove what funds in the account are exempt from seizure.
How to Avoid Garnishment
In garnishment cases, time is key. It is important to respond to debt collectors
and negotiate a repayment plan or settlement before they sue you. If you
have already been sued or have a garnishment, speak to an attorney immediately.
Don’t give up more than you have to! If you have any questions about
the specific of your case or need assistance in protecting the funds in
contact the Allmand Law Firm, PLLC and schedule a free, initial case review with our knowledgeable Dallas
bankruptcy lawyer today.
Sign up for a
free financial empowerment session today!