Being overwhelmed by debt is stressful enough but added stress and strain because of wage garnishment may feel unbearable to individuals struggling with debt. Wage garnishment occurs when a creditor has filed a lawsuit to recover a debt and has successfully obtained a judgment against the party owing the debt. Once the judgment is in place, and their wages are being garnished, the party owing the debt may face increasingly difficult struggles paying their bills and keeping up on their debts.
It is important for individuals struggling with debt to understand that different options may be available through the legal process to help them, including with wage garnishment. Bankruptcy may be one option to consider. Bankruptcy can be helpful in several ways but after a bankruptcy petition is filed, an automatic stay can help stop creditor collection actions. This can stop creditor actions from proceeding or any new ones from beginning altogether. Wage garnishment can be prevented, stopped and, in some instances, reversed.
There are different personal bankruptcy options available based on the situation and circumstances of the filing party. Chapter 7 bankruptcy is an option that allows for the liquidation of non-exempt assets to repay creditors and enjoy debt relief. For individuals who have a reliable source of income, and may not meet income limits necessary to qualify for Chapter 7 bankruptcy, Chapter 13 reorganization bankruptcy may be an option to consider.
Whatever the situation, legal options may be available to help individuals struggling with debt and seeking to end wage garnishment or other challenges making it more difficult for them to eliminate their debt. Bankruptcy options can provide a fresh financial start and a potential end to the stress, making it important to be familiar with the different options available and which may be best depending on the circumstances.