Wage Garnishment with an Arizona Bankruptcy
Although the point of garnishing wages is to make sure creditors get paid, states that permit it have a higher bankruptcy rate than states that do not. What can you do to prevent or stop wage garnishment?
If you do not pay your bills, a creditor can sue you to collect what you owe. If they win, and you still cannot or will not pay, the court may grant the creditor the ability to garner your wages. This means that your employer will be required to send a certain portion of your paycheck directly to your creditors. It basically takes the middle man – you – out of the deal.
Garnishments are based on your wages, and under federal law only a certain percentage of your paycheck can be garnished. If you have a good reason to object to your wages being garnished, you may object and request a hearing. Another way to challenge or prevent garnishment is to try to work out a payment arrangement with the creditor, but they are not under any obligation to agree.
For many, the only solution to wage garnishment is to file for bankruptcy. Once you file your petition, the wage garnishment will stop. During bankruptcy, you may be able to avoid the lien and cancel the debt, with the help of an experienced bankruptcy attorney.
Stephen M. Trezza