Our Lawyers Can Help You Stop Wage Garnishment
It can be really tough to manage your finances when you're struggling to keep up with your debt payments. Wage garnishment can make it even harder, especially when you need to cover your essential living expenses.
At Richard Hughes, we understand that wage garnishment can be a stressful and difficult situation. That's why we have a skilled attorney who can provide practical solutions to eliminate garnishment orders and restructure or eliminate your debts. Our Texas bankruptcy lawyer will conduct a comprehensive evaluation of your financial situation and inform you about all the relevant aspects of wage garnishment. We will work with you to present various options and effective strategies to help you attain your desired financial goals. Rest assured, we are here to help you through this challenging time.
What is Wage Garnishment?
Aggressive creditors often use wage garnishment as a way to collect debts. Essentially, if you owe money to someone, they can go to court and obtain a legal order that allows them to take money directly from your paycheck. This is referred to as wage garnishment.
It is important to note that if you are in debt, the court can notify your employer to withhold a specific amount of money from your paycheck and send it directly to your creditor until the debt is fully paid off. It is also important to remember that there are limits on the amount of money garnished from your net disposable income (after taxes) in some states. To ensure that you are fully protected under Texas garnishment laws, it is critical that you hire an experienced Texas debt attorney who is well-versed in these laws, as they may vary from those in other states.
Are You Experiencing Wage Garnishment in Texas?
Dealing with wage garnishment can be challenging, especially in Texas, where the laws can be complex. It's important to know that the amount that can be garnished depends on the type of debt, and child support or alimony creditors may be able to garnish up to 50% of your disposable income. Additionally, it's worth noting that state and local governments in Texas can garnish wages without a court order. By understanding these laws, you can explore options for stopping wage garnishment and take steps toward finding a resolution.
Our Texas credit attorney is here to help. They know all about federal and state bankruptcy and consumer protection laws and can assist you through the process of wage garnishment judgments. You can count on them to provide effective options to help you move forward.
Can My Wages be Taken to Pay Off Credit Card Debt?
It is important to note that in Texas, wage garnishment is strictly prohibited for consumer debts such as credit card debt, personal loans, auto loans, and medical debt. Creditors cannot garnish your wages even if a judgment is filed against you. Keep in mind that wage garnishment is only permitted in exceptional cases, such as domestic support, back taxes, or defaulted federal student loans.
Creditors can seize assets other than your home, like money in your bank account, and garnish your wages even if you work for a non-Texas company. Our garnishment lawyer can help navigate these complex situations to protect your rights and interests.
Federal Wage Garnishment Laws
Wages can be garnished up to 25% of disposable income or the amount exceeding 30 times the federal minimum wage under CCPA. Certain types of income, like Social Security benefits, are exempt.
A court or administrative order is required to initiate garnishment. Employers must comply or face legal action and penalties. Seek legal assistance if needed.
Richard Hughes knows this can be a stressful time. Contact us today to see how we can help you avoid wage garnishments.
Will Bankruptcy Stop Wage Garnishment?
Filing for bankruptcy can stop wage garnishment. An automatic stay will prevent most creditors from taking action against you. Chapter 7 sells non-exempt assets to pay off debts, and most remaining debts are discharged. Chapter 13 involves a repayment plan over three to five years. Dischargeable debts stop being garnished, but taxes cannot be discharged.
Which Debts are Nondischargeable in Bankruptcy?
Some debts are nondischargeable in bankruptcy, meaning they cannot be eliminated through bankruptcy proceedings. Here are some examples of non-dischargeable debts in bankruptcy:
- Taxes: Most federal, state, and local taxes are non-dischargeable. However, there are some exceptions. For example, income tax debts may be dischargeable if certain conditions are met, such as the taxes being more than three years old.
- Student loans: Student loans are generally non-dischargeable in bankruptcy, except in rare cases where the borrower can demonstrate undue hardship.
- Child support and alimony: Debts for child support and alimony are non-dischargeable in bankruptcy.
- Debts for personal injury or wrongful death caused by the debtor's drunk driving: These debts are nondischargeable in bankruptcy.
- Debts incurred fraudulently: Debts incurred by fraud, embezzlement, or other intentional wrongdoing are non-dischargeable in bankruptcy.
- Fines and penalties owed to government agencies: Debts owed to government agencies for fines or penalties, such as traffic tickets or criminal restitution, are non-dischargeable in bankruptcy.
- Debts incurred after filing for bankruptcy: Any debts incurred after the bankruptcy petition is filed are generally non-dischargeable.
It's important to note that these are just some examples of non-dischargeable debts and that the rules can be complex. Our qualified bankruptcy attorney can help you understand which debts are dischargeable and which are not in your specific situation.
How Do I Know If My Wages Will Be Garnished?
If your wages are going to be garnished, you will typically receive notice of the garnishment from your employer or a court. Here are some common situations in which your wages may be garnished:
- Unpaid taxes: If you owe back taxes to the IRS or state tax authorities, they may initiate wage garnishment to collect the debt.
- Unpaid child support or alimony: If you are behind on child support or alimony payments, the other parent or their attorney may seek a court order to garnish your wages.
- Unpaid student loans: If you are in default on your student loans, the Department of Education or a private loan servicer may seek a court order to garnish your wages.
- Unpaid judgments or debts: If a creditor obtains a judgment against you in court for an unpaid debt, they may seek to garnish your wages to collect the debt.
If you receive a notice of wage garnishment, it's important to take action to address the underlying debt or dispute the garnishment if you believe it is in error. Contact Richard Hughes to review your rights and options for resolving the debt and stopping the wage garnishment.
How Can I Stop or Dispute Wage Garnishment in Texas?
If you've had a wage garnishment judgment made against you, we understand how tough it can be to try and ignore it in hopes it will go away.
However, there are ways to dispute the decision by submitting documents to the court. During the court hearing, you can provide evidence of financial hardship to explain why you're struggling to pay the garnishment amount.
We know this can be stressful, but ultimately, it's up to the judge to decide whether to end the wage garnishment or continue with it. If you're able, the quickest way to stop the garnishment and receive your full paycheck is by paying off the debt promptly. But if this isn't possible, we're here to help. Our Tyler-based wage garnishment lawyer can evaluate your situation and offer other debt-relief options. We're here to support you and help you through this difficult time.
Getting Rid of Wage Garnishment
Filing for bankruptcy in Texas can stop wage garnishment by triggering an automatic stay. This halts repossession, foreclosure, collection calls, and lawsuits. Chapter 7 can wipe out unsecured debts, while Chapter 13 reorganizes debts into a manageable payment plan lasting 3-5 years. It can also reduce debt and save on interest.
Our Experienced Bankruptcy Attorneys Fight for Your Rights
Richard will assess your finances and provide you with the best debt relief options. Rest assured, you can protect your wages and bank accounts from garnishment by creditors through Chapter 7 or Chapter 13 bankruptcy laws.