Is your paycheck being garnished?
Wage garnishment occurs when a certain portion of your paycheck is taken from you and used to pay back a creditor or debt collector. When this happens, your employer takes the money out before you receive your check.
Wage garnishment can cause both:
- Embarrassment (since your employer is dragged into your financial troubles) and
- 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 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 to 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.