The final straw that brings some to file Chapter 7 bankruptcy varies from filer to filer. For some, it's the inability to meet the budget because of overwhelming credit card debt. For others, it might be the fear of losing property like a home or vehicle because of debts. Some people put off filing for bankruptcy so long that they end up in court. When that happens, things can get more complex and you might even end up having your income intercepted before it gets to you. This is known as wage garnishment, and it happens to consumers every day. To find out more about wage garnishment and Chapter 7, read on.
When Bills Go Unpaid
Almost any creditor can take you to court if you don't pay them what they believe is owed. Before that happens, though, they will make every effort to contact you via mail, phone, email, text, and every other means possible. This constant contact can drive those with a lot of unpaid bills to distraction. Since most debtors don't appear in court to fight against the debt charges, the creditor almost always wins, and that means consumers can be stuck with several negative situations. One is a bad mark on their credit. In some cases, though, the court will allow the creditor to garnish the wages of a debtor through wage garnishment.
Stop This Process
When you are in danger of losing your income through wage garnishment, you can only stop it by paying the judgment or filing for Chapter 7 bankruptcy. The amount owed to the creditor, you can be assured, has now nearly doubled because of legal fees, interests, fines, and other charges. Once you file for bankruptcy though, you have protection. That protection doesn't just protect you against future negative actions, but it applies to past bills too. A Chapter 7 filing will not only wipe out nearly all of your debts and reverse court judgments, but it will also bring a halt to wage garnishment. Creditors may no longer contact you for any reason. That protection is called the automatic stay and is one of the most powerful legal remedies for dealing with debts that consumers have.
Speak to your lawyer about the automatic stay and wage garnishment because certain types of debts, like student loans, taxes, and back child support, are not subject to the stay. Find out more from a bankruptcy lawyer at a firm like Havner Law Firm.