Creditors have many ways to collect on an unpaid debt, and one of the most common methods is through the use of wage garnishment. Many people live paycheck to paycheck and cannot afford to have a portion of their pay taken away from them by their creditors; however, an experienced Georgia bankruptcy attorney may be able to make them stop. If you would like to learn more about how you can stop wage garnishment in 2021 in the Duluth area, call the office or contact Cornwell Law Firm today.
What is a Wage Garnishment?
A wage garnishment, also known as income withholding, is a method of recoupment that a creditor can use against a debtor. The creditor can obtain an order from the court that requires the debtor’s employer to garnish a percentage of each paycheck and send it directly to the creditor for payment on the debt. Under a new Georgia law, a wage garnishment can be in effect for up to 1,095 days, or three years, before the creditor needs to return to court and renew the order if the debtor still owes on the debt.
In Georgia, a creditor is allowed to garnish up to 25% of a debtor’s disposable earnings if the debt is for a private student loan and up to 15% for other types of debts. They can also take any wages that exceed $217.50 per hour, which is 30 times the federal minimum wage. This can cause serious financial strain for people already in debt, but a bankruptcy attorney may be able to help and get the wage garnishment to end.
How Can I Stop a Wage Garnishment?
One way to stop a wage garnishment is to file for Chapter 7 or Chapter 13 bankruptcy with the help of an experienced Georgia bankruptcy lawyer. When a person files for bankruptcy, an automatic stay is placed on all collection attempts by creditors, which includes income withholding through a wage garnishment order. If multiple creditors have filed wage garnishments against a person for their debts, all garnishments will stop. Through the bankruptcy process, creditors’ claims against you will either be paid off or eliminated, which will permanently end the garnishment proceedings for those debts. To learn more about how filing for bankruptcy in Georgia can help end wage garnishment against you, talk to our office today.
Talk to Cornwell Law Firm Today
A wage garnishment can make it feel like it is impossible to pay your debts and cover your living expenses, but an experienced Georgia bankruptcy attorney can help you go through your legal options. To learn more about how to make a wage garnishment stop in 2021, talk to the knowledgeable bankruptcy lawyers at the Cornwell Law Firm in Duluth. Call the office or contact us online to schedule an evaluation of your case today.