You may have your wages and bank accounts garnished for debts you owe including, tax debt, student loans, personal loans, medical bills, and credit card bills. A garnishment is an order authorized by the court, requiring your employer to withhold part of your wages to pay your debt.
Indiana law allows creditors to garnish 25% of your disposable income.
A garnishment order issued by the court can also be used to freeze your bank account and use the money in the account to pay your debt. If your bank account has been frozen you have a limited amount of time to stop the bank from paying those funds to your creditor.
Once your wages are garnished or your bank accounts seized you may not be able to pay your basic living expenses, such as rent, car payments, and daycare or utility bills.
Garnishments are a very serious and complex legal matter. A wage garnishment can be issued after a lawsuit is filed, judgment is rendered, interrogatories are served and completed and after a motion of proceeding supplemental is heard. Sound confusing? IT IS! If you have a lawsuit and you are not sure if these actions have been filed by your creditor, you could be in danger of having your wages garnished.
Filing a bankruptcy will stop garnishments immediately while we work together to find a solution to extinguish your debts through bankruptcy. No money up front can get your case filed the same day when necessary.
- If you currently have a garnishment in place, filing Bankruptcy will stop it by your next pay date.
- If your creditor is trying to get a garnishment, Bankruptcy will stop the action before you lose any of your hard earned money.
- If your wages are being garnished for tax debt, Bankruptcy will stop the garnishment and in some cases you may not have to pay the tax debt. Filing Bankruptcy on tax debt will allow you to receive future tax refunds.
- If your wages are being garnished for student loans, filing Bankruptcy will stop the garnishment.