Debt Problems: How Do Wage Garnishments Work?

Posted on March 27, 2017 at 12:00pm by
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Wage garnishments are one of several tools creditors may use to collect your defaulted debts. Most creditors have to obtain a judgment before they can garnish your wages. After a creditor receives a judgment, your employer will be required to hold back a portion of your pay. Depending where you live and your personal financial situation, the amount withheld from your wages can vary. Kansas and Missouri have different laws on how creditors can garnish wages. However, both states follow a federal standard allowing creditors to garnish up to 25 percent of your pay (it may be higher for certain types of debts). It is important to develop strategies to stop a wage garnishment, as they can put you into an even worse financial situation.

Many people may find it difficult or impossible to make mortgage, vehicle and utility payments. It is not uncommon to default on other credit obligations.

Wage garnishments are devastating, but they are not the only way to creditors can force you into repayment. If you reside in Kansas, creditors can also levy funds deposited into your bank account.

Can Bankruptcy Stop a Wage Garnishment?

There may be several ways to stop a wage garnishment. For example, you may be able to appeal a judgment if it contains incorrect information. It may also be possible to use an exemption. Filing for bankruptcy can also help put the brakes on a wage garnishment. After filing, an automatic stay is issued. The automatic stay prevents most collection attempts.

These are only a few examples. Other options may exist. Depending on your situation, an attorney can walk you through several possible options for resolving a wage garnishment.

The Kansas City bankruptcy attorneys at The Sader Law Firm can help you find the most effective solutions for resolving your financial situation.

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