Struggling with wage garnishment presents a significant challenge for many hardworking individuals across various industries. This legal process, which involves employers withholding a portion of an employee’s wages to pay off a debt, affects approximately one percent of private-sector workers.
What Is Garnishment?
In Minnesota, if a creditor obtains a judgment against you, they have the right to request your employer to withhold a portion of your wages each pay period and send it directly to them.
This process, known as garnishment, legally obligates your employer to comply with the creditor’s request.
The maximum amount that can be garnished from your net wages is 25%, but they must leave you with at least 40 times the Federal Minimum Wage, which is $290 per week..
Bankruptcy as a Solution
In such challenging circumstances, exploring the option of filing for bankruptcy may provide a path to financial relief. Bankruptcy has the potential to halt wage garnishment through the implementation of an automatic stay, a court order that temporarily suspends most creditor actions, including wage garnishment. However, it’s essential to understand that bankruptcy may not be a universal remedy for all wage garnishments.
Exceptions to Bankruptcy’s Impact on Wage Garnishment:
- Family Support Payments: Obligations such as child support and alimony remain unaffected by bankruptcy’s automatic stay.
- Non-dischargeable Debts: Certain debts, such as recent tax liabilities, may persist despite bankruptcy filing.
- Chapter 13 Obligations: Filing for multiple bankruptcies or failing to meet obligations in a Chapter 13 bankruptcy plan could lead to the reinstatement of wage garnishment.
Steps to Stop Wage Garnishment with Bankruptcy
If you’re considering bankruptcy as a means to stop wage garnishment, here are some essential steps to navigate the process:
- Speak with an attorney: Considering the complexities of bankruptcy laws and the nuances of individual financial situations, speaking with an experienced attorney is crucial. A knowledgeable attorney can provide personalized guidance and help you navigate the process effectively.
Walker and Walker can file your case within days or hours and we can often do so before you pay any attorney’s fees at all. Garnishment is stopped the MOMENT your case is filed.
