Four Steps To Fight Wage Garnishments

August 20th, 2010 by Reed Allmand

Four Steps To Fight Wage GarnishmentsIf you’re significantly delinquent on your debts then you’re probably at risk for a wage garnishment.  Creditors are becoming more aggressive when it comes to collecting on even small amounts of debts and wage garnishment is just one of their many collection tools.  Here’s what you need to know:

  1. Don’t ignore the notices you receive from your creditor.  One of those notices could be informing you of a pending lawsuit.  If you find out that you are being sued, take the time to respond and show up to court.  You have a right to defend yourself against creditor lawsuit. You can also file bankruptcy which will stop the lawsuit immediately.
  2. Come to court prepared.  Is the amount that they say you owe correct?  Do you really owe this debt?  The creditor filing the lawsuit is obligated by law to prove that you in fact owe the debt; but oftentimes they don’t have the proof.  If they don’t have proof that you owe this debt, then they will not be able to win a judgment and they will not be able to use a wage garnishment against you.
  3. If a creditor is able to win a judgment against you and tries to get a wage garnishment, know your rights.  First off, don’t go into hiding.  If you’re working, they will find you and garnish your wages.  First off know that if you are earning less than $217.50 a week they cannot garnish your wages. If you earn $290 a week or less, they can only get a wage garnishment for 10 percent of your income or whatever you earn above $217.50 a week, they must choose whichever is less. If you earn more than $290 a week, they can garnish up to 25 percent of your earnings.  However, they cannot garnish so much of your money that it prevents you from paying essential things such as your rent, utilities or child support payments.

Remember, even if you are already suffering from a wage garnishment, filing bankruptcy will stop the garnishment.  Once you are approved for a bankruptcy discharge, the garnishment will be eliminated and the associated debt will be discharged. 

avatar

About Reed Allmand

Website

Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

View all posts by Reed Allmand

Subscribe

Subscribe to our e-mail newsletter to receive updates.

FAQ

Why do I need to submit a new wage order when I modify my plan

When we modify your bankruptcy plan we are changing your plan payments. This means that we have to get with your employer and change the terms and amount of your wage order. The only way we can do that is by filling out a new wage order form.  

Learn More
What happens if the stay terminates on my home?

If the bankruptcy stay terminates on your home that means that even though your in bankruptcy, your creditor can pursue all there legal remedies they can pursue if you were not in bankruptcy. This includes foreclosure, and having your house sold and evicting you from your house.

Learn More

Find Location

map
  • Dallas Bankruptcy

    5646 Milton Street, Ste. 120 Dallas, Texas 75206
  • Fort Worth Bankruptcy

    860 Airport Freeway, Suite 401, Hurst, Texas 76054
  • More Locations

Meet Our Clients