When you are very behind on your bills, you could be slapped with a court order wage garnishment. This means that your employer is required by law to hold back part of your wages earned to give to your creditors. The percentage withheld depends on the state you live in (find out Nebraska’s laws from our last post about wage garnishment). The garnishment will only last until your debt is paid in full.
The Process of Wage Garnishment
Wage garnishment is a serious threat to the financial stability for you and your family. It is best to figure out a solution before a lawsuit and wage garnishment is pushed on you. Wage garnishment cannot be put into place overnight. The process is as follows: a lawsuit must be filed and a court hearing must take place if you file an “Answer” with the court. At the hearing the judge will rule for or against you (it is heavily advised that you be there or the judge will rule for the creditor). If a lawsuit is filed and you do not file an “Answer” then no hearing will take place and the judge will rule in favor of the creditor. If the judge rules in favor of the creditor, then the wage garnishment paperwork will be put together for your employer.
The Timeframe You Have to Get Help
Skrupa Law’s bankruptcy attorneys want you to know that you have only about 30 days to try to get the lawsuit dropped before the court hearing and the garnishment begins. You can talk to your creditor and set up a payment plan that works for both parties, especially if the wage garnishment will put you and your family into jeopardy.
Wage Garnishment and Student Loans – What You Need to Know!
If you’re not notified by the Department of Education about a wage garnishment or given the choice to challenge it, then that’s grounds for an appeal. However, if you are given notice, the Department of Education can garnish your wages without a court order. Remember student loan companies usually have several repayment plans that will allow you to pay back your school debt at an affordable monthly rate.
Wage Garnishment While Filing for Bankruptcy
If you decide to file for bankruptcy after your wages have begun to be garnished, you may be able to retrieve some of that money back. Talk to a bankruptcy lawyer at Skrupa Law if you want to explore that option.
Note: The Department of Education and IRS are an exception to these rules, they do not need a court ruling first to garnish your wages at a moment’s notice; however, you will receive a warning by mail first.
Contact One of the Best Bankruptcy Attorneys in Omaha at (402) 999-0247
Skrupa Law Office, LLC is a bankruptcy law firm focused on helping you through the hard times of deciding if bankruptcy is right for you. If you are being threatened with wage garnishment, contact Skrupa Law today to get advice and find out your options. We will communicate with your creditors to come up with the best solution for you. For more information about bankruptcy or wage garnishment, our Omaha office number is (402) 999-0247. If you’re located in Lincoln, feel free to call our second office at (402) 464-3311.