When you fall behind on your bills, dealing with creditors and collections agencies can be daunting. A qualified Terre Haute bankruptcy law firm can review your specific situation and help you understand what you’re facing and your best legal options.
Understanding When a Creditor Can Garnish Wages
When you are unable to pay your medical bills, credit card bills or other outstanding debt, you’ll likely start receiving letters from those creditors threatening to take action. One of the collections tools potentially available to your creditors is a wage garnishment of your paycheck, bank account or tax refund, for example. As a Terre Haute bankruptcy attorney can explain, wage garnishments can only be used in certain circumstances. For example, a creditor cannot garnish wages until they have obtained a money judgment from you for the outstanding debt. Before a judgment is entered, a lawsuit must be filed and you will have an opportunity to respond to the creditor’s claims. Therefore, the time to take action is before you see a notice of wage garnishment. Contact an attorney at the outset when you know you will be unable to pay your bills.
How Bankruptcy Impacts Wage Garnishment
Your Terre Haute bankruptcy attorney can discuss a variety of options available to you if you fall into financial distress. However, if you are already facing wage garnishment, your attorney can discuss ways to obtain relief. For example, in most situations, when you file for Bankruptcy, you may benefit from an automatic stay of collections proceedings. This means that if the court allows it, your creditors cannot continue with a wage garnishment once you’ve filed for protection from the Bankruptcy Court. Let your attorney carefully review your circumstances and help you understand what to expect. The automatic stay can be one of the biggest advantages to filing for bankruptcy in some situations.
Put a skilled Terre Haute bankruptcy law firm in your corner when dealing with creditors and financial upheaval. To schedule an appointment with The Rowdy G. Williams Law Firm, P.C., call (812) 232-7400 or (317) 489-0310.