Stopping Wage Garnishment and Bank Levies through Bankruptcy
Many people find they have had their wages garnished only after a paycheck has had a chunk of money taken out of it. Similarly, people often learn of bank levies only after funds in their bank account have been frozen.
When you are already dealing with serious debt challenges it can be extremely upsetting to find out more money is being taken from you. However, there is a remedy that can stop wage garnishment and bank levies.
It is possible to stop wage garnishment and a bank levy by filing for bankruptcy protection. Once you file for bankruptcy, any wage garnishments and bank levies must end. Recent garnishments and levies of funds may be returned to you. It really is in your best interests to take immediate action in cases like these. If your bank account has been levied you should contact us immediately and we can assist you with having up to $1,000 of the money taken from your account returned to you.
Additionally, all efforts by creditors to collect debts against you must cease, including any foreclosure actions. If you file for a Chapter 7 bankruptcy, your credit card debt will be erased. In a Chapter 13 bankruptcy, you will have your debt reorganized into a reasonable repayment plan that you can actually live with. Once you complete the payments under your three to five year Chapter 13 plan, your credit card debts will be forgiven, even if you have only paid a small percentage of what was owed.
For a creditor to garnish your wages, he or she must obtain a judgment against you. You would have to receive a notice or a summons in the mail that you are being sued.
If you fail to respond to the summons, then the judgment automatically goes against you. The creditor can obtain an order that allows the creditor to inform your employer of the wage garnishment of your paycheck.
Your employer by law is required to withhold up to 10 percent of your total paycheck. This money goes toward paying your debt with that particular creditor.
A bank levy will freeze some or all of the assets in your bank account. The sheriff gives the bank a legal order to freeze the assets and set the money aside, again to pay a debt you owe to creditors.
Consult an Attorney about Ending Garnishment Now
Discuss your concerns with an experienced debt-relief attorney at the law firm of John Hargrave, in Barrington, New Jersey. We understand the law and can help you get out from under your debt and regain your financial footing. Call 856-547-6500 to schedule a free consultation, or e-mail us today.
We are a debt-relief agency. We help people file for bankruptcy relief under the bankruptcy code.