When struggling with overwhelming debt, one of the worst circumstances that an individual can face is having their wage garnished. Wage garnishment can be extremely stressful for individuals already struggling to manage debt, get caught up on payments and get ahead of their financial struggles and challenges.
Wage garnishment can occur when a creditor files a lawsuit against a party that owes the creditor a debt. If the creditor prevails in their lawsuit, it will result in a judgment against the party owing money. Once the creditor has a judgment, they can garnish the party’s wages until the debt is repaid. Filing for bankruptcy can stop creditor collection actions from being filed. If a collection lawsuit has already been initiated, filing for bankruptcy may also halt its progress and prevent a judgment from being obtained.
In addition, if a judgment has already been obtained by a creditor, it may be possible to prevent the wages of the party owing the debt from being garnished. In circumstances when wage garnishment has already begun, it may be possible to stop the garnishment and, in some situations, recover some of the wages that have already been garnished.
Personal bankruptcy options may be able to help prevent wage garnishment and address other concerns the filing party may have. There are two types of personal bankruptcy including Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 bankruptcy is referred to as a liquidation bankruptcy option and Chapter 13 bankruptcy is referred to as a reorganization bankruptcy option.
It is important for those faced with the stress and strain of overwhelming debt to be aware that legal protections are available to help them. Because legal options for debt relief are available to address each individual’s unique situation, it is important for individuals struggling with debt and seeking debt relief to be familiar with all the options available to them and the ways they may be able to help in their circumstances.