Debt is a problem that comes with a number of consequences. This includes
garnishment of your income or bank account. When financial instability
makes it difficult to pay the bills and creates concerns about the future,
it can quickly lead to the accumulation of credit card debt. When the
problem goes unaddressed, creditors and debt collectors can take matters
into their own hands to recover outstanding debt.

At Allmand Law Firm, PLLC, our bankruptcy lawyers have helped thousands
of clients throughout Dallas, Fort Worth, and the surrounding areas of
Texas when they needed a brighter financial future. Although all cases
are different, clients commonly come to us experiencing symptoms of debt,
including wage garnishment. We understand how garnished wages or bank
accounts can impact a person’s life and add additional stress, which
is why we go above and beyond in our efforts to not only help them take
control, but also address the underlying issue that led to the collection action.

What Happens with Garnishment?

Garnishment is a tool creditors and debt collectors use to legally enforce
collection of a debt. When a consumer fails to make payments toward debt,
creditors and debt collectors can initiate a legal process to legally
ensure they receive payment, even if it is not voluntary.

Once the debt collector or credits secures a court judgment against you,
they can use it to seize your wages or bank account. In the case of wage
garnishment, most states will not allow the seizure of more than 25% of
your wages. Also, certain types of income and benefits, such as Social
Security income, 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 had a garnishment issued on your bank account
or wages, speak to an attorney immediately. You might still have available
options, including bankruptcy.

Bankruptcy can provide you with the benefits of an
automatic stay, which is issued by the court when a bankruptcy petition is filed. This
automatic stay will order collection actions against you to stop, including
foreclosure, utility shutoffs, repossession, and garnishment. This can
afford the time needed to organize your finances for monthly payments
in a Chapter 13 plan, or to prepare for liquidation under Chapter 7. It
also initiates the process needed to obtain a discharge of debts, which
can provide you with the financial freedom and flexibility to gain control
of your economic health.

In both
Chapter 7 and
Chapter 13 bankruptcies, credit card debt can be discharged once the process is complete.
This means you will no longer be legally obligated to make payments toward
a discharged debt, and will be free from the threat of garnishment should
you continue to make payments for any new debt.

Approaching garnishment and the strategies used to address underlying debt
issues is always a unique matter, which is why our legal team focuses
on personalized representation and counsel. Our attorneys draw from decades
of combined experience when helping our clients, as well as the expertise
of Attorney Reed Allmand, who is Board Certified as an expert in bankruptcy
law. We can review your situation personally and explain what we can do to help.

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