Filing for Bankruptcy Can Stop Wage Garnishments

July 12, 2013

Filing for bankruptcy can stop creditors from garnishing borrowers’ wages while also allowing borrowers to discharge many of their outstanding debts.

Filing for bankruptcy can stop creditors from garnishing borrowers’ wages while also allowing borrowers to discharge many of their outstanding debts.

For borrowers who find themselves buried in debt, a common tactic that creditors use to try to urge these borrowers to make payments on this debt is threatening to – or actually – garnishing their wages. Unfortunately, however, wage garnishments can be financially crippling for borrowers who are already clearly having a hard time with their finances, and if creditors are able to come through on their threat of wage garnishment, the effects can be financially devastating to borrowers. Some of the negative effects of wage garnishments include (but are not limited to):

  • Increasing the likelihood that borrowers are unable to pay for their basic needs due to their decreased income
  • Having the wage garnishment be retroactive and effect income earned prior to the date on which the garnishment goes into effect
  • Losing their job if two or more creditors enact wage garnishments against the borrower (While U.S. bankruptcy laws will prevent employers from firing individuals due to having a wage garnishment from one creditor, employers have the discretion to fire employees with more than one wage garnishment).

While the threat of wage garnishment can be incredibly stressful, borrowers should remember that they do have options when it comes to staving off creditors in these situations. Specifically, by filing for bankruptcy, borrowers can not only stop creditors from garnishing their wages, but they can also discharge much of their debt (including their medical bills, credit card debt, etc.). Because borrowers will have more options available to them before a wage garnishment has been realized by a creditor, it’s critical that these borrowers seek the help of a skilled bankruptcy lawyer as soon as creditors begin suggesting they will seek wage garnishments.

Colorado Bankruptcy Lawyers

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.

Categories: Bankruptcy, Bankruptcy Facts, Blog, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Colorado Bankruptcy Lawyers, Debt Relief, Wage Garnishments