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Protecting yourself against the impact of wage garnishment

Louisiana readers know that the impact of debt can reach into many areas of life. When you are behind on your payments and have no hope of catching up on your own, it is more than just an inconvenience. It can lead to stress and confusion as creditors start calling, you receive notice of collections and more. One of the things you may have to deal with is wage garnishment.

Wage garnishment is the process of withholding a certain amount of your income for the purpose of repaying debt. Not only can this feel invasive, it can put an even greater financial strain on your family. If you received notice of wage garnishment, you may find it beneficial to learn how filing for bankruptcy can make it stop.

How garnishment of wages works

Wage garnishment may feel intrusive and like an invasion of your personal rights, but it is actually legal under certain circumstances. Your creditors cannot simply tell your employer to hold back a part of your paycheck, however. There are certain regulations that dictate how the process of wage garnishment works.

Garnishment can only start after a creditor requests a court hearing. You have the right to a notice of the hearing and to attend the hearing. Even if the court approves the garnishment of your wages, you still have certain rights. Here is what you may need to know about this process:

  • Only a certain amount of your total earnings is subject to garnishment. In most cases, they cannot take more than 25 percent of your disposable income per week.
  • Your employer cannot fire you if a creditor has approval to start a garnishment of your wages.
  • There are ways that you can halt the wage garnishment process.

By filing for consumer bankruptcy, you can make the process of wage garnishment stop. Upon filing, the automatic stay will go into effect, which will effectively halt all collections efforts you are facing, including the garnishment of your hard-earned income.

Why consider bankruptcy?

Bankruptcy may not be your first choice, but it could offer you a way to achieve a better, stronger financial future. Through either Chapter 7 or Chapter 13 bankruptcy, you can deal with the debt that is causing you harm.

In addition to halting the process of wage garnishment, bankruptcy can help you secure the peace of mind you need knowing that a stable and secure financial future is possible.

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