What is Wage Garnishment?

Wage Garnishment

Wage garnishment involves withholding a portion of an individual’s earnings to repay a debt owed to a party. The unpaid debt can be a car loan, medical bill, child support order, civil judgment, federal tax bill, state tax bill, etc.

It’s usually made effective by a government entity or a court when the individual hasn’t responded to other requests for payment in a timely manner. The government entities could be state tax collection agencies, the IRS, or other federal organizations.

When Does That Come Into the Process?

The wage garnishment will proceed once a non-government entity obtains a court order to garnish wages. However, government entities don’t need the assistance of the court to garnish wages.

Once a wage garnishment is established, the individual’s employer will get a notice. This employer must also withhold a certain portion of the employee’s earnings until the debit is totally resolved. Earnings may include wages, bonuses, commissions, lump sums, salaries, and retroactive merit increases.

When it comes to wage garnishments, however, there is a limit on how much can be garnished from a person’s disposable wages. Title III of the Consumer Credit Protection Act (CCPA) puts a limitation on the percentage of an individual’s disposable wages to be garnished weekly.

When Wages May Be Garnished in New York

In New York, any reputable Brooklyn wage garnishment attorney, for instance, will inform their clients that wage garnishment could be up to 25% of the judgment debtor’s wages. Also, it can’t exceed 10% annually.

There are steps, however, to prevent your wages from being garnished. One thing you can do is to challenge the garnishment or talk to your creditor.

Please note, however, that if you owe money to a lender, they can legally sue you for back payments. A judge may order a certain amount of your paycheck to be directly routed to the company, bank, or even a private individual who is still owed by you. This is legally referred to as income execution. Wage garnishment is usually ordered for:

Medical billing
Legal issues from divorce, such as child support
Past due payments from credit cards
Student loans
Vehicle loans

It is often financially devastating to have a significant amount of your paycheck taken from your account before it’s posted into your bank account. This sentiment is especially true when dealing with unexpected setbacks, like medical treatment costs that make it challenging to earn a living.

Does Bankruptcy Stop Wage Garnishment?

Yes, bankruptcy can prevent wage garnishment. In fact, bankruptcy may be the only option when it comes to wage garnishments preventing you from managing your other bills. On most types of income execution, bankruptcy filing starts with an automatic stay, which involves the immediate ending of wage garnishments. And if a creditor continues to take out some of your wages after the automatic stay goes into effect, they can be fined and forced to reimburse the money to you. This is one main reason why it’s critical to consult with a top-notch attorney, like a bankruptcy lawyer in Brooklyn, New York, to fight for you.

How Your Attorney can Help

An experienced bankruptcy lawyer will do all the required paperwork for you for a bankruptcy filing. This lawyer will also ensure that the automatic stay is executed. He/she will also work out a reasonable amount you can pay to your creditors and force creditors not to contact you. And if any creditor

For More Information

For more information about wage garnishment and bankruptcy, contact Ursulova Law Offices today!

Ursulova Law offices, P.C.

Contact Ursulova Law Offices, P.C. to find out how our NY Bankruptcy Attorneys can help you today. Our offices are located in New York, Brighton Beach, Brooklyn and Garden City.