Having your wages garnished is stressful and frightening. For anyone, a wage garnishment can be difficult. However, for someone living paycheck-to-paycheck, the loss of any funds can be devastating. A person whose wages are being garnished may find it difficult to pay debt payments after paying their living expenses. It can be easy to get behind on debt payments, which can result in foreclosure and repossessions.
If you receive a notice about a wage garnishment, do not ignore the notice. Contact our Buckeye wage garnishment lawyers to discuss your legal rights and your options for fighting the wage garnishment.
How Much Can a Creditor Garnish From My Wages in Buckeye?
Arizona’s wage garnishment laws provide for wage garnishment of 30 times the federal minimum wage rate or 25 percent of net pay, whichever amount is less. Creditors argue that the amount is fair. However, for the person who is losing part of his or her paycheck each week, the wage garnishment seems very unfair.
How Does a Creditor Obtain A Wage Garnishment Order?
The wage garnishment order begins with a debt collection lawsuit. A creditor files a lawsuit claiming that a person owes the creditor money. Common reasons for filing a debt collection lawsuit include medical debts, credit card debts, personal loans, and deficiency amounts.
Once the creditor obtains a judgment against the person, the creditor can apply for a wage garnishment order. The order directs a person’s employer to withhold a certain amount of wages from the person’s pay each pay period until the debt is paid in full.
The government can garnish wages for some debts without a court order, such as debts for student loans, spousal support, back taxes, and child support.
How Can I Stop a Wage Garnishment in Buckeye?
Paying the debt in full stops the wage garnishment. Some individuals may qualify to have the amount reduced if the court finds that the garnishment constitutes an undue hardship.
A bankruptcy filing stops a wage garnishment immediately. When you file a Chapter 7 or Chapter 13 bankruptcy case, the automatic stay provisions of the Bankruptcy Code prevent creditors from collecting debts without court approval. Therefore, the wage garnishment should stop as soon as the creditor is informed that you filed for bankruptcy relief. Your attorney may also notify the court so that it can issue an order directed to your employer to stop garnishing your wages.
If the debt that was the subject of the judgment and the wage garnishment order is dischargeable or forgiven in bankruptcy, the debt is eliminated, and you do not need to worry about the wage garnishment.
However, if the debt is not dischargeable in bankruptcy, the creditor could request that the court resume garnishing your wages after you exit your bankruptcy case. In a Chapter 13 case, you most likely include the debt in your Chapter 13 plan so that it is paid in full by the end of your case, which resolves the matter of the wage garnishment.
Contact Our Buckeye Wage Garnishment Attorneys
There are defenses against debt-collection lawsuits. There are also defenses against wage garnishment orders. Acting quickly when you receive notice of a lawsuit or garnishment request is the key to mounting a strong defense. If the defense does not work, you can turn to bankruptcy as an option for stopping wage garnishments.
The legal team of Allegiant Law Group is working to help individuals who are dealing with debt problems. Call 602-562-1000 now to schedule your free consultation with a Buckeye wage garnishment lawyer.