Wage Garnishment and How to Stop It
Under Georgia law, if a creditor files a law suit and gets a judgment against you, they have the right to file a writ of garnishment to allow them to start garnishing up to 25% of your wages. Garnishments are typically the last straw for many of my clients, and most people will acknowledge that they can ignore the harassing phone calls and the threatening letters, but once 25% of their paycheck vanishes, they call me to stop the garnishment once and for all.
Not only can a creditor with a judgment garnish your wages, they can also file a garnishment action against your bank and garnish all the money in your bank accounts. Even if you aren’t living paycheck to paycheck, if a creditor garnishes both your paycheck and your savings account, the results are often catastrophic.
Bankruptcy Can Help
If you are facing a wage garnishment and fear that your bank accounts might a creditor’s next target, filing bankruptcy will stop any future garnishment actions from taking place. This is because filing bankruptcy creates a legal “stay” against any creditor collection activity, which means that after filing, creditors cannot contact you or take any steps to collect any money from you after you file bankruptcy.
In many circumstances, I can even recover whatever a creditor has garnished from you within the 90 days prior to filing your bankruptcy case. Please do not wait until its too late. A wage garnishment can be disastrous, but combine that with a bank garnishment, and financial ruin is in your near future. Sticking your head in the sand is no answer. If you have a default judgment against you, it is often cheaper and easier to simply file a Chapter 7 bankruptcy and get on with your life.
Atlanta bankruptcy attorney Will Geer can be reached at (678) 587-8740 or firstname.lastname@example.org for a free consultation.