What to expect if you are facing wage garnishment pt. 2
In our last post, we discussed what people can expect if their wages are garnished to pay off debts. In that post, we discussed the process and protections of wage garnishment as well as the fact that your employer will know about your money problems. We want to also note that it can often affect other relationships, including the ones you have with your spouse, children and other dependents.
In this post, we will look at some ways you can stop your wages from being garnished or avoid that drastic measure altogether.
In order to avoid wage garnishment, it will be necessary to address your debt before creditors decide to take legal action. You can do this by working with your creditors to find a temporary repayment plan. You can also seek the help of a financial counselor who can help you establish a budget that allows you to continue to pay off debt.
If these options are not possible or were not effective, it may be wise to consider filing for bankruptcy protection. In accordance with federal bankruptcy laws, actions including wage garnishment, foreclosure and other collection efforts must stop once a person has filed for bankruptcy.
As we have mentioned in previous posts, Chapter 13 bankruptcy is often a good option for people who are working and earning a wage. This option allows people to develop a plan to prioritize and repay creditors. If you have wages to garnish or if they are already being garnished, you may want to consider Chapter 13 bankruptcy.
Waiting too long to take any action can only make matters worse and people can just keep digging themselves deeper and deeper into a financial hole. Whether you want to pursue bankruptcy or seek alternative debt relief solutions to avoid wage garnishment, discussing the situation with a bankruptcy lawyer sooner rather than later can be crucial.