Putting a stop to wage garnishment

| Aug 8, 2020 | Chapter 7 Bankruptcy |

Creditors are known to file lawsuits against borrowers who do not repay money owed to them. One legal remedy used to recover this money from borrowers in Ohio is wage garnishment.

Creditors who win a successful judgment against a borrower can ask a judge to order a wage garnishment. Once the court orders a wage garnishment, an official of the court will deliver the information to the employer. A portion of the borrower’s wages will then be redirected to the creditor before the borrower receives a paycheck.

One way to stop wage garnishment action is to negotiate a repayment plan with the creditor. Before negotiating, the borrower should take a moment to look over their finances and determine the amount they possess the ability to pay. Once they decide on a number, a call to a creditor may result in an amicable agreement. The borrower should understand, however, that a creditor who is already awarded wage garnishment action may not find it in their best interest to enter into a new agreement.

Borrowers possess the right to challenge a wage garnishment order entered in error. They may also challenge orders that show the potential to damage their finances unfairly. Time limits apply to this remedy, so borrowers should act quickly.

When all else fails, a borrower with unmanageable debt can give themselves a bit of a fresh start by filing bankruptcy. A bankruptcy filing will provide temporary relief by stopping wage garnishment while a court prepares to rule on the filing. There are many pros and cons to a bankruptcy filing, so borrowers should give careful consideration to the matter to ensure it is the best option for their particular situation.

Wage garnishment can prove devastating for individuals who are already struggling with their finances. It can also deflate morale to maintain full-time employment with the understanding you do not fully control the money you earn. If you’re facing wage garnishment, consider reaching out to an attorney experienced with bankruptcy and personal finance issues.