Facing garnishment of wages can devastate a family’s finances. It can even lead to job loss; your employer can legally fire you if you have more than one garnishment of wages in a 12-month period. And, even when you manage to hang on to your job, having up to 25 percent of your disposable income garnished can make it difficult or impossible to make ends meet.
Colorado Springs Bankruptcy Attorney Stephen H. Swift understands the anger, embarrassment and stress that too frequently dominate the lives of those dealing with unmanageable levels of debt. And we are here to help.
Wage garnishment can occur as the result of a court order and can continue until an entire debt is satisfied. When served on an employer, garnishment is taken as part of the payroll process – before the net proceeds are distributed to an employee. Typically such action is taken to satisfy spousal support, student loans, tax levies or voluntary wage assignment, which is a court order on behalf of a creditor seeking to satisfy an unpaid debt.
Garnishment of Wages and Colorado Springs Bankruptcy
- Garnishment of wages comes to a halt when a consumer files for bankruptcy protection in Colorado. A stay is issued and the debt may ultimately be discharged, or forgiven, through the bankruptcy process.
- Wages earned before a bankruptcy filing are not exempt. This can include accruing bonuses or other compensation. Consulting an experienced Colorado Springs bankruptcy attorney as soon as you are notified of garnishment is the best course of action.
- While federal law prohibits an employer from firing you for one garnishment, the practical working world dictates that you are still likely to suffer consequences. And you can be legally fired for the second garnishment.
Stopping Garnishment of Wages in Colorado Springs
Filing for bankruptcy in Colorado Springs will immediately stop the garnishment of your wages. Other actions may dodge the debt or stall garnishment for a period of time.
- Changing Jobs: This may work briefly. But the creditor will likely catch up to you at your new place of employment – NOT the impression you want to make with a new employer.
- Challenge: You can attempt to challenge the judgment that resulted in the garnishment action.
You can also pay the debt. But by the time a consumer’s wages are garnished, he or she is typically in serious financial trouble. In many cases, serious non-dischargeable debt – such as child support or student loans – may be involved. Regardless, seeking bankruptcy protection can help. It will stop garnishment, give you a chance to address your overall debt load, and permit you to make a repayment plan for non-dischargeable debts under the protection of the court.
Speak to an experienced attorney and get the facts. Filing for bankruptcy in Colorado can be the fresh start a consumer needs. Colorado Springs Bankruptcy Lawyer Stephen H. Swift is here to aid consumers in the bankruptcy process.Serving clients in in Colorado Springs, Pueblo, Denver and the surrounding area.
Colorado Springs bankruptcy – 866-893-2440 or 719-520-0164 – legal consultation
