When you’re in debt, making ends meet while repaying the funds you owe can be incredibly complex. Unfortunately, many are unable to break this cycle, which can result in falling further into financial trouble. However, when you find that your wages are being garnished, it can cause even more stress. As such, understanding what you can do to stop wage garnishment in Memphis is critical. If this reflects your circumstances, the following blog and a Shelby County, TN bankruptcy lawyer can help you explore your legal options for these complicated and overwhelming situations.
What Does It Mean for Wages to Be Garnished?
When someone is subject to wage garnishment, it means that they are behind on debt payments to the point where a creditor has received a court order allowing them to take wages directly from the debtor. This is often the result of a creditor who has obtained a default judgment against the debtor. Essentially, instead of paying you your full paycheck, your employer is legally required to withhold a certain portion of your paycheck to repay a creditor on your behalf.
It’s important to understand that a creditor doesn’t always need a court-ordered judgment. For example, if you are behind on child support or student loans, the government does not need to receive permission before garnishing your wages. It’s important to also know that if you are subject to wage garnishment, your employer cannot terminate your employment.
What Can I Do to Stop Wage Garnishment?
If your wages are being garnished, it can make paying bills and affording household essentials incredibly challenging. Generally, you have two options to deal with garnishments. The first is to attempt to settle with the creditor. You may be able to negotiate a one-time, lump sum payment to legally relieve you of your obligations to pay off debt. If you pursue this option, it is imperative to get your deal in writing before making a payment to the creditor.
Unfortunately, you’ll find that many creditors are unwilling to negotiate settlement amounts and this is not a viable option if you have many debts. As such, you may want to pursue bankruptcy. This is an ideal option for those in these circumstances, as once you file, you are granted an automatic stay. Essentially, this means that creditors cannot continue debt collection efforts against you, including wage garnishment. However, if you have high-priority debts that are non-dischargeable, like alimony or child support, these garnishments can continue. All other creditors must petition the court to lift the stay if they wish to continue collection efforts, which can be a complex process.
If your wages are being garnished and you want to break the vicious debt cycle, it’s in your best interest to connect with an experienced attorney who can help you explore your options. When you’re interested in filing for bankruptcy, the team at the Arnold Law Firm can help. We understand how complicated this process can be, which is why we are dedicated to helping you experience relief. Reach out to our firm today to learn more.
