The Cassidy Law Firm Blog

Tuesday, June 10, 2014

How Do I Stop Wage Garnishment in Monmouth County?

If you are like the average American you count on every penny you receive in your weekly paycheck. If you realize that a substantial chunk of your paycheck is missing one week, therefore, it can be a substantial blow to your budget. This actually happens to hard working people like you every day in Monmouth County, New Jersey because of an old debt. When a creditor obtains a judgment against you, the creditor may then proceed to use all lawful means available to execute on the judgment, including garnishing your paycheck. One way to stop garnishment is by filing for bankruptcy protection.

A creditor can garnish a significant portion of your weekly paycheck in New Jersey. Depending on the type of debt and your financial circumstances, a creditor can garnish from 10 – 60 percent of your income each week. Chances are good that if a creditor is garnishing your paycheck for one debt there are other debts out there you are also unable to pay. If there appears to be no end in sight for your financial problems, bankruptcy may be the answer.

Bankruptcy can provide both immediate and long-term relief from your financial problems. When you file a petition for bankruptcy the court will issue an automatic stay order. This order prevents all creditors from commencing, or continuing, any action to collect on the debt you owe the creditor. The automatic stay order applies to garnishment actions and will, therefore, stop any wage garnishment in Monmouth County.

Depending on the type of debt you owe the creditor and the chapter you use to file bankruptcy, bankruptcy may be able to eliminate the debt entirely as well. A chapter 7 bankruptcy eliminates most debts when the bankruptcy is discharged, approximately four months after it is filed. Some debts, however, cannot be discharged in bankruptcy such as child support, certain tax debts, and student loans in most cases. Even if you are unable to discharge the debt that is the cause of the garnishment, by eliminating other debts you may be able to pay that debt down without the creditor needing to garnish your wages.

If you file a chapter 13 bankruptcy, the debt you owe the garnishment creditor will become part of your repayment plan. As long as you abide by the terms of the repayment plan the creditor will not be able to garnish your paycheck going forward.

If you are concerned about wage garnishment in Monmouth County and/or your overall debt load, consult with an experienced Monmouth County bankruptcy attorney as soon as possible to discuss your options.  The Cassidy Law Firm is located in Shrewsbury, New Jersey.  We service all of Monmouth County, Ocean County, Middlesex County and all of New Jersey.  Contact The Cassidy Law Firm today for a free consultation with an experienced Monmouth County bankruptcy attorney.

 *We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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