Using Bankruptcy to Stop or Prevent Wage Garnishment

The state of Texas, along with a few other states, may not allow creditors
to garnish wages to satisfy debts, except for special circumstances such
as spousal / child support, student loans, and federal taxes. A wage garnishment
is when a creditor receives permission from the court to withhold payment
from paycheck earnings and have them forwarded to the creditor instead.
If garnishment of your wages has yet to start, or you think creditors
may seek another way to seize assets, you may want to consider how
bankruptcy can help.

States that allow wage garnishment have limitations to follow under federal
law. This means creditors should not be garnishing more than a certain
amount they are allowed. Again, if you default on a student loan or owe
back taxes, wage garnishment is a possibility when you fail to act on
a lawsuit or summons received. Garnishments can consume a considerable
amount of your income depending on the reason behind it. Up to 50 percent
of disposable income in Texas, for example, may be garnished for child
support obligations.

There are points to consider with wage garnishment that debtors may not
be aware of. If your employer is located in another state that allows
garnishments, creditors may have a right to enforce a garnishment. Your
bank account may be subject to garnishment if wage garnishment is not
available.

Wage garnishment is just one of many symptoms of debt. If you are facing
the prospect of garnishment or other debt-related issues – including
foreclosure, utility shutoffs, and more – it is in your best interests to explore
your debt relief options with an experienced attorney.

At Allmand Law Firm, PLLC, our team is led by Dallas Bankruptcy Lawyer
Reed Allmand, who is Board Certified in Consumer Bankruptcy by the Texas
Board of Legal Specialization. You can trust in our experience to help
you pursue the financial freedom you need.

Contact us today for a FREE financial empowerment session.

By | 2017-12-13T02:00:46+00:00 October 10th, 2016|Bankruptcy, Tax - Debt Garnishments|Comments Off on Using Bankruptcy to Stop or Prevent Wage Garnishment