Wage Garnishment
When you’re deep in debt, the last thing you need is to start seeing a significant reduction in your paycheck. However, that’s what can happen when debt collection turns particularly aggressive and a creditors starts to garnish wages. Wage garnishment can be particularly debilitating. You may be completely unable to get out of your dire situation without critical income.
If you are being held down by wage garnishment, bankruptcy may be a way to end that barrier. Bankruptcy will put an automatic stay on wage garnishment and all other collection efforts. It may also lead to the debts the creditors are trying to collect being discharged permanently.
Cincinnati Wage Garnishment Lawyer
Cincinnati wage garnishment lawyer Eric Steiden helps Southern Ohio and Northern Kentucky residents who are drowning in debt and find themselves even deeper due to losing a portion of their paycheck. Bankruptcy can end wage garnishment and help you have a fresh start.
With more than 30 years of experience, the team at Steiden Law Offices can help end wage garnishment so that you will have access to your full income. Bankruptcy also can provide a lifeline out of the accompanying debt. Call Steiden Law Offices today at to set up a free consultation.
We help those facing wage garnishment in any of our offices in Cincinnati, Covington and Florence. We are able to assist those in Hamilton, Boone and Kenton Counties.
Ohio Information for Wage Garnishment and Bankruptcy Law
- Wage Garnishment and the Law
- Bankruptcy Filing Stops Wage Garnishment
- Putting an End to Wage Garnishment for Ohio and Kentucky Residents
Wage Garnishment and the Law
Wage garnishment means that a portion of your paycheck is taken and given to a creditor before you even receive it. Any income you receive, including bonuses, commissions and anything else may be garnished.
The government can garnish your wages for back taxes and in some student loan cases, but most creditors must first win a judgment against you. To win a judgment, the creditor must sue you. They then other must win, or if you do not fight the suit, they must get a default judgment. They must then obtain an order of garnishment. The order is then filed with your employer, who pays the money to the court, who turns it over to the creditor.
Under law, the court can only garnish up to the lesser of either 25 percent of your disposable income or your disposable income minus 30 times the federal minimum wage. Your disposable income is the money that is left once Social Security, income taxes and other legally required deductions are made.
Bankruptcy Filing Stops Wage Garnishment
When you file for bankruptcy protection, an automatic stay is placed against all attempts to collect for debts. This means that wage garnishment must end, and you will receive your full paycheck until you are discharged from bankruptcy, your bankruptcy petition is dismissed or the court otherwise lifts the stay.
The automatic stay does not apply to garnishment or other collection efforts for domestic support, such as child support, alimony or spousal maintenance.
In a Chapter 7 bankruptcy, you may be able to discharge the underlying debt for which your wages were being garnished, essentially meaning it is erased and taken off the books. In a Chapter 13 bankruptcy, your finances are reorganized and you pay according to plan approved by the court.
Your bankruptcy attorney can advise you on what options may be available to you and how you can stop wage garnishment.
Putting an End to Wage Garnishment for Ohio and Kentucky Residents
If you are deep in debt, wage garnishment can just drag you farther in. Filing for bankruptcy can put a stop to these efforts. Cincinnati bankruptcy lawyer Eric Steiden and the team at Steiden Law Offices can assist those losing their paychecks to wage garnishment at any of their offices in Cincinnati, Florence or Covington. Call today to set up a consultation.
