When you’re behind in making some of your payments, you may find yourself facing garnishment of your wages. Creditors may seek a court order requiring your employer to withhold a percentage of your earnings in order to pay the debt. As much as 25 percent of your net income may be garnished, but this percentage applies to all creditors and may be split among several debts. In other words, one creditor may garnish 10 percent of your wages, and another may garnish 15 percent of your wages. It is enforceable by state law.
Income subject to garnishment may include:
- Wages and salary
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Speak with an ABQ bankruptcy attorney for free.
Wage garnishment may be embarrassing, but it can also have serious implications on your financial well-being. It is crucial that you discuss your options with an Albuquerque bankruptcy attorney.
Not all of your income is necessarily subject to garnishment. Per federal law, your Social Security benefits, pension and retirement benefits, and public assistance may be considered exempt. Exempt income may still be subject to wage garnishment under certain circumstances, so it’s important that you discuss your personal situation with one of our experienced bankruptcy attorneys in Albuquerque, New Mexico to learn more.
Prevent Wage Garnishment
You may be able to stop the garnishment by paying your debts in their entirety. However, this is not always a viable option for most people. A second option is to file for bankruptcy. By filing for bankruptcy, you’ll have the protection of an automatic stay, which can stop such collection activities as garnishment of your wages. Bankruptcy can provide you with a financial fresh start by eliminating your debt and allowing you an opportunity to rebuild your credit.
At Melwani Law, we understand how difficult this time can be for you. Our goal is to provide you with the kind of legal advice you need to make sound financial decisions that will help get you back on your feet again. Although your wages may be garnished under state law, U.S. Bankruptcy Code offers many legal protections, including protection from garnishment. Contact Melwani Law today for a free initial consultation to learn more about your options.