How Bankruptcy Can Stop Wage Garnishments and Creditor Harassment

How Bankruptcy Can Stop Wage Garnishments and Creditor Harassment

Dealing with your wages being controlled and creditors harassing you for unpaid debt can become stressful and overwhelming. You may not have to deal with this forever. Filing for bankruptcy is something that can legally prevent creditors from taking your income and harassing you to pay back debt. Talk to a Chattanooga bankruptcy lawyer to learn more about your legal options.

Can Bankruptcy Stop Wage Garnishment?

Many people wonder whether filing for bankruptcy can really stop wage garnishment. The way wage garnishment works is a creditor or other third-party files a court order that withholds a certain amount of money from your income. This portion of your income will be used to pay off the debt you owe them.

The good news is that certain laws protect you from being fired after wage garnishment goes into effect. As you may imagine, some employers may try to avoid working with employees who start falling into financial issues like wage garnishment or bankruptcy. These laws not only prevent this, but they also limit the amount of income that can be taken each week.

Filing for bankruptcy does stop wage garnishment in many cases. The goals of bankruptcy with wage garnishment are to help you pay back and escape your debt. Debt discharge or a new payment plan under bankruptcy usually stops wage garnishment because the debt is either erased or recalculated into a new payment plan.

Your employer will often be notified about bankruptcy stopping your wage garnishment. This is usually a necessary part of the process. Consult with a bankruptcy lawyer if you have any concerns.

Types of Creditor Harassment Stopped by Bankruptcy

Creditor harassment is the next most common concern people have. You might be wondering about the effects of bankruptcy on creditor harassment going forward. Find reassurance that creditors are not legally allowed to make collection efforts on your debt once you have filed for bankruptcy.

After all, this is the whole point of filing for bankruptcy, to escape creditors. A creditor cannot collect the debt through payments while you are filing for bankruptcy. If your creditor calls to ask for a payment, let them know you are in the process of bankruptcy.

When you are working with a bankruptcy lawyer, the creditor is expected to contact you through your lawyer. Consider explaining this to the creditor the next time they call. Consult with a lawyer about any questions or concerns you may have about creditor harassment when going through bankruptcy.

One of the best outcomes of bankruptcy is debt discharge. The best part about debt discharge is that once your debt is discharged, the creditor of that debt is permanently stopped from collecting payments on that debt. This means no more creditor harassment for that debt.

Contact Tom Bible Law Today

Do not panic if your wages are still being garnished after filing for bankruptcy. Contact us at Tom Bible Law today at (423) 424-3116 for a consultation about your financial situation. Our legal team of Tennessee bankruptcy attorneys is ready to help you navigate the complex bankruptcy process. We can be found in the Tennessee cities of Chattanooga and Tullahoma.

Related Posts
  • Healthcare and Your Finances: Navigating Medical Debt Read More
  • Decoding Cryptocurrency: Is It a Viable Debt Relief Option? Read More
  • The Psychological Impact of Financial Stress and How to Overcome It Read More