There Are Ways to Stop Wage Garnishment in Pennsylvania
Having your wages garnished, regardless of the reason, can be upsetting and also lead to additional financial concerns. Wages are garnished if a creditor is able to secure an order of garnishment from the court. If this happens, money from your paycheck goes directly to the creditor.
If you are faced with this issue, the best thing you can do is learn more about how to stop wage garnishment so it does not negatively impact you in the future. For the sake of this article, we are going to take a closer look at the rules for wage garnishment in Philadelphia in regards to Chapter 7 and Chapter 13 bankruptcy.
Wage Garnishment and Chapter 7 and Chapter 13 Bankruptcy
Generally speaking, Chapter 7 & 13 bankruptcy allow you to put an end to wage garnishment. However, there are some exceptions for non-dischargeable debt, which can include some back taxes, student loans, and past due child support. With these types of debt garnishment can start as soon as a Chapter 7 Bankruptcy case is over. For that reason, Chapter 13 Bankruptcy is used in many cases to stop garnishment on non-dischargeable debt. After filing Chapter 13 Bankruptcy, you are given up to 5 years to pay back the debt at a rate that you can afford. Sometimes, it is better to pay past due child support directly and not have it involved with the bankruptcy. An experienced bankruptcy lawyer can give you the proper advice about what is best for you in your specific situation since the general rules always have exceptions.
From the moment you file for Chapter 7 or 13 bankruptcy, you are protected from creditors through an “automatic stay”. This prohibits creditors from contacting you regarding payment of your debt. For this reason, wage garnishment also comes to an end.
Are you interested in putting an end to wage garnishment sooner rather than later? You may want to consider an emergency Chapter 7 or 13 bankruptcy. This can be very beneficial because it allows you to have the automatic stay put into place much faster and to immediately stop the garnishment.
One of the primary benefits of Chapter 7 bankruptcy is that wage garnishment will not start back up on dischargeable debts once the filing is complete. Since your debt will be wiped clean, there is no ability for creditors to garnish your wages once again.
One of the many benefits of Chapter 13 Bankruptcy is that in addition to giving you time to repay debts, it can also wipe out or reduce many types of debts. Chapter 13 also allows you to pay back non-dischargeable debt at a rate you can afford. Occasionally, a bankruptcy is not the best option for a person and an experienced bankruptcy lawyer can advise you what is in your best interest, as well as what you should and what you should not do.
Chapter 7 and Chapter 13 bankruptcy are not the only ways to put an end to wage garnishment, but they are a method to consider if you are in a difficult financial situation and require protection from your creditors.
To learn more about Chapter 7 bankruptcy and Chapter 13 bankruptcy, including how it will impact your wage garnishment in Philadelphia, contact an experienced Philadelphia bankruptcy attorney. With professional assistance, it is much easier to make decisions that will improve your financial life in the near future and help you enjoy a fresh start.