For some people who have debts, learning that they’re being sued is the most stressful thing they can go through. This can lead to the horrible situation of having to deal with wage garnishments. If you’re in this position, you might wonder what you can do to stop the garnishments.
One possible option is to file for bankruptcy. Typically, a bankruptcy will stop a wage garnishment. It also prevents creditors from seeking new garnishments against you and can help you eliminate enough debts so that you can regain your financial footing.
Bankruptcy can help you take control of your finances
A wage garnishment is a forced way for you to pay a creditor, but it only takes care of that one bill. You’ll still have others that you have to think about. When you file for bankruptcy, you’re able to take control of all your debts in that one filing.
If you file a Chapter 13 bankruptcy, you have to make payments to the court that are designed to pay down or pay off your debts over time. These are divided by the bankruptcy trustee so that your creditors receive the portion of the payments that they’re due. After a set period of time, your remaining debts may be discharged. This is usually an option for someone who has plenty of money coming in, but far too many bills to pay.
If you file a Chapter 7 bankruptcy, you’re asking the court to relieve you of most of your debts in one fell swoop. This is generally the best option for anybody whose income is shaky or fairly low, with minimal assets beyond their home and car.
Learn more about your bankruptcy options
Anyone who’s facing wage garnishment should find out what options they have to handle the situation. In many cases, the garnishment is going to cause significant financial hardship. Filing for bankruptcy protection is not only your right, it could be the most financially responsible action to take. Please continue reviewing our website to learn more.