If you owe money to a lender and you are not able to make payment, as long as you are gainfully employed, your wages can be garnished. This also holds true regardless of the type of debt it is or whether it is a private lender or money you owe to the government. The following are three examples of how a lawyer can help you with this problem.
An attorney can help you file for bankruptcy
If a creditor has filed a lawsuit against you for the purpose of having your wages garnished, an attorney can provide you with immediate relief. If you qualify for a bankruptcy, any legal action from your creditors will stop. It is bankruptcy judge who will determine what you owe and how it will be paid. If you qualify for a chapter 7 bankruptcy, you may not owe anything. If not, you may qualify for a Chapter 13 bankruptcy. In this case, your debt will likely be reduced, and you will pay a court trustee an amount specified by the judge each month, but your wages will not be garnished. Bankruptcy, however, does not apply to all debts.
An attorney can help you with wage garnishment for taxes
Most taxes, especially income taxes, are exempt from a bankruptcy, so obviously, if your wages are being garnished for back taxes, bankruptcy will not help. There are, however, federal laws regarding how much can be taken out of your paycheck. Equally important are state laws that govern the amount that can be taken as well. Each state has their own laws on top of the federal regulations that govern how much can be taken from your check as well as certain exemptions that you are entitled to when calculating the amount of the garnishment.
An attorney can help you with wage garnishment for student loans
If you have received a letter stating you are in default on your student loan and your wages will be garnished, an attorney may be able to stop the garnishment or reduce the amount taken from your check. There are many ways this can be done. This will depend upon your circumstances and whether the loan is from a private lender or the federal government. Some of the factors that an attorney can challenge a garnishment include income, the status of your employment or other reasons including hardship.
Whether you are being threatened with garnishment of your paycheck or the order already be set in motion, an attorney may be able to help you. This is true whether it is the government or a private lender who is attempting to garnish your paycheck. For more information, talk to a company like Stuart J Sinsheimer Attorney at Law.