With recent unemployment rates rising like the tides, it's no wonder that many people are facing financial ruin. As debts collect and interest rates rise, debtors may find themselves overwhelmed with bills. In some cases, tireless creditors may pursue a court order to garnish a debtor's wages. Wage garnishment is not only intrusive and debilitating, it can be psychologically damaging, as well. If you are in danger of losing part of your wages, you do have options.
How Can They Do That?
In many cases, wage garnishment is pursued by the IRS for debts owed to the government. Common debts include:
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• Court fees
• Unpaid taxes
• Child support
• Defaulted student loans
• Monetary judgments of any kind
The IRS is not the only entity that can file for wage garnishment; however, any creditor that wants to take a portion of your pay check must file and receive a court order. Once approved, creditors will contact your employer and ask them to set aside a portion of your payment. Your employer cannot refuse, even if you are a salaried employee. Creditors are limited in that they can only garnish 25% of your dispensable income; however, if you are struggling with other debts, this can be crucial.
Protecting Your Income
If your creditors are threatening you with wage garnishment, you should consult a bankruptcy attorney for how to relieve your debts. Some common approaches for avoiding wage garnishment include:
• Contacting creditors directly. Oftentimes, you can negotiate a payment plan that will pacify creditors.
• If a new payment plan will not work, discuss paying a settlement that will temporarily appease creditors.
• Challenging a court ordered wage garnishment in court. You will need to hire a defense attorney.
• Filing for bankruptcy, because it can help ease the burden of dischargeable debts
In the state of Florida, creditors may not garnish your wages if your income provides more than 50% of your family's total income. This means that if you are a single mother or father in the state of Florida, creditors cannot legally garnish your wages. If you are being threatened by creditors, it is recommended that you contact a lawyer to discuss your legal options.
For more information about the benefits of bankruptcy, or advice on how to avoid wage garnishment, contact the West Palm Beach bankruptcy attorneys at the law office of Eric N. Klein & Associates.
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