One of the most common questions we get asked at our bankruptcy law firm is “how do your wages get garnished?” If you’re considering filing for bankruptcy, it’s important to understand how wage garnishment works and what your rights are. Keep reading to learn more.
What Is Wage Garnishment?
Wage garnishment is a legal process whereby a court orders an employer to withhold a portion of an employee’s wages and divert them to a creditor. Wage garnishment is usually used as a last resort by creditors when an individual has failed to make loan or credit card payments.
How Do Your Wages Get Garnished?
In order for a creditor to garnish your wages, they must first obtain a court order. Once they have this order, they will send it to your employer with instructions on how much money to withhold from your paycheck. Your employer is then legally obligated to comply with the court order.
One of the most important things to know about wage garnishment is that if you fail to respond to any notifications of legal action taken by your creditors, the court will automatically allow them to take more aggressive action. This can include wage garnishment.
What Are Your Rights When It Comes To Wage Garnishment?
While wage garnishment is a legal process, there are limits on how much of your paycheck can be Garnished. The amount that can be taken through garnishment depends on the state you live in, but it is typically between 10% and 25%.
If you’re considering filing for bankruptcy, it’s important to understand how wage garnishment works and what your rights are. If you have any further questions about wage garnishment or bankruptcy, our experienced bankruptcy lawyers can help. In some cases, bankruptcy will stop wage garnishment. It usually at least puts it on hold so you have time to organize your financial situation and make garnishment less of a burden in your life.
