Stopping Wage Garnishment in Atlanta
In the current poor economy, many people are having trouble paying their bills. Creditors are aggressively attempting to collect from people who have fallen behind on their payments. Non-stop collection calls can cause people to become afraid just to answer the phone.
When creditors cannot connect with people, they will pursue other means to collect money owed to them. Eventually, creditors will step up their recovery efforts by taking legal action.
When a person falls behind on paying his or her debts, a creditor can sue the person to obtain a judgment for the amount of money that is owed. Once an individual has been sued, the creditor may file a garnishment in the court. The creditor may attempt to garnish the individual's bank account, wages or both. When money is already tight, a wage garnishment can be devastating.
The law allows creditors to take 25 percent of a person's "disposable" income with a garnishment. The law considers a person's disposable income to be the amount which is left after taxes and certain deductions.
Short of paying off the creditor in full, stopping wage garnishment can only be accomplished by filing bankruptcy.
An experienced Georgia Chapter 13 bankruptcy attorney will be able to help. Chapter 13 bankruptcy offers a number of advantages to help people who have fallen behind on child support or tax obligations.
Automatic Stay on Collections
One of the biggest benefits of filing bankruptcy is the automatic stay on creditors' collection actions against an individual and his or her property. The automatic stay is triggered immediately upon filing. From that point, creditors may not continue with any collection activities, including wage garnishment, letters, phone calls and lawsuits. An individual does not need to take any additional action. Creditors are notified of the bankruptcy from the list provided in the bankruptcy petition.
An Atlanta Bankruptcy Attorney Can Help
Creditor harassment can quickly compound the stress of financial troubles. When creditors start garnishing wages, people may be forced to make tough choices. Bankruptcy may be a solution. If your creditors are threatening you with legal action or you are already facing garnishment, contact an experienced Atlanta bankruptcy attorney to review your choices.