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OFFICE LOCATIONS IN ANN ARBOR, BLOOMFIELD HILLS, DEARBORN, FLINT, SOUTHFIELD AND WARREN

Is your paycheck being garnished?

When your paycheck is garnished, a part of it is deducted from you and used to repay a trustee or debt collector.  When this occurs, the employer deducts the funds from your pay before you collect it.  A borrower must first seek a court judgment against you, which is received after the creditor or debt collectors file a lawsuit against you.  Certain forms of debts, however, may be recovered by wage garnishment even though there is no court judgment.  Overdue income tax debt, unpaid child support, and deferred student loan debt are only a few examples.

Wage garnishment can cause both:

  1. Embarrassment (since your employer is dragged into your financial troubles) and
  2. Severe financial hardship (since you are forced to make ends meet with less income). Creditors can take up to 25% of your net pay, leaving you with very little money to buy food and gas.

A set of keys, a gavel, and some foreclosure paperwork on a deskA creditor first needs to get a court judgment against you, which is obtained after the creditor or debt collectors sue you. However, there are certain types of debt that can be collected through wage garnishment even without a court judgment. These include overdue income tax debt, unpaid child support, and defaulted student loan debt.

If your paycheck is being garnished or you are about to be garnished, we can put a stop to this action immediately through bankruptcy. Once you declare bankruptcy, you get to benefit from an automatic stay, which brings your creditors' collection efforts (including wage garnishment) to a halt while you undergo the bankruptcy process.

Bank Account or Tax Refund Garnishment- We can help stop wage garnishment and possibly get some of the money back for you!

At Kostopoulos & Associates – The Fresh Start Law Firm, we have The Detroit Bankruptcy Team Attorneys who can help you explore your options for using bankruptcy to obtain relief from wage, bank, and income tax garnishment.