Ending Wage Garnishment By Filing For Chapter 7 Bankruptcy
Finding a new job after getting terminated is not always an easy process, and it leads to an array of financial problems. For example, a loss of income means falling behind on paying creditors what they are owed, which often leads to lawsuits. Failing to pay creditors back after they have filed lawsuits often leads to debtors facing wage garnishment and struggling to make a living. If you were fortunate enough to find a new job after getting terminated but have been hit with a wage garnishment, filing for Chapter 7 bankruptcy can be helpful. Filing for Chapter 7 bankruptcy can assist with getting for financial situation back in order, and a lawyer that provides stop garnishment legal help can help to get the process started.
Is Everyone Eligible for Chapter 7 Bankruptcy?
There are rules when it comes to who is eligible to file for Chapter 7 bankruptcy, as a judge must approve the application. Someone who has already filed for bankruptcy within a specific period of time might not be eligible to file again until some time has passed by. The best way to find out if you are eligible to file for Chapter 7 bankruptcy is to consult with a lawyer. He or she will discuss a few personal things about your life to determine if you are qualified to get approved or not. You can also discuss your wage garnishment situation while consulting with a lawyer about filing for Chapter 7 bankruptcy.
How Does Chapter 7 Bankruptcy Stop Wage Garnishment?
Filing for Chapter 7 bankruptcy will lead to an automatic stay that prohibits creditors from making further collection attempts. The automatic stay immediately goes into play while the bankruptcy case is being processed. During bankruptcy court, creditors can ask the judge to remove the automatic stay, but a lawyer can ensure that the stay is left in place. A lawyer will be your voice throughout the entire bankruptcy process, including alerting creditors that an automatic stay is in place. Keep in mind that the court will also alert creditors about the automatic stay to stop your wages from being garnished.
Can Certain Debts Continue to Be Garnished?
There are certain debts that may continue to be garnished when you file for Chapter 7 bankruptcy. For example, child support payments and federal student loans are debts that may continue to be garnished if you have such debts. Speak to a lawyer about your specific situation so he or she can provide legal advice regarding ending wage garnishment. Filing for Chapter 7 bankruptcy might be the solution you are looking for.