Is your paycheck in danger of being garnished due to outstanding debt? Chapter 7 and Chapter 13 bankruptcy can help stop wage garnishment and creditor collection actions. Attorney Ted Troutman has been helping clients achieve peace of mind and move forward in a positive direction for more than 30 years. Learn how our Portland, OR, law firm can stop a wage garnishment.
Wage garnishment can place you under a huge amount of stress but our legal team can help you move forward in a positive direction.
What Is a Wage Garnishment?
When you fail to pay credit cards or other debts, the creditor can file a lawsuit to collect what is due. Once a judgment is entered, the lender has the option to collect by garnishing your wages. The lender will start by sending a notice to your employer. Then the payroll department can withhold a certain amount from your check and instead, give it to a judgment creditor.
Ted Troutman can help put an end to wage garnishments, and stop the cycle of having too little money to live on and support your family.
Getting your weekly or bi-weekly paycheck with a portion missing could leave you without enough funds to pay all of your bills. But there are ways to end wage garnishments and stop the cycle of having too little money to live on and support your family.
Filing for Bankruptcy Can Protect Your Paycheck
The Benefits of the Automatic Stay
The automatic stay is a legal mechanism that essentially stops creditors in their tracks. Collection lawsuits, auto repossession, mortgage foreclosures, and wage garnishments cannot be put in place or move forward when bankruptcy is filed. If a creditor fails to take heed of the automatic stay and persists in calling or collecting from you, you have the option to hold that creditor liable for any funds wrongfully taken or any other damage done to you as a result of the violation of the automatic stay.
A Chapter 7 bankruptcy means that all unsecured debts are forgiven. This allows a borrower to use the money they do have to pay for secured loans, such as cars and homes. A Chapter 7 will also prevent a creditor from suing a consumer, obtaining a collections judgment, or enforcing a judgment by garnishing wages. If you have a wage garnishment currently in place, filing for Chapter 7 relief will allow your employer to stop withholding. When your employer stops taking money out of your check, you get a full paycheck again and can pay for the things you need.
The automatic stay is also applicable in Chapter 13 cases and the instant a Chapter 13 case is filed, all collection actions must stop. This includes ending any current wage garnishment and also preventing a creditor from putting a new garnishment in place. A full paycheck goes a lot farther than a partial check and allows you to start fresh by repaying your debts according to a Chapter 13 plan of debt reorganization.
Take Action Today
When your wages are garnished, your family suffers. We can stop a wage garnishment from taking a bite out of your bottom line. If you have been sued for a debt and are fearful a wage garnishment may be issued to your employer, attorney Ted Troutman can also help protect your livelihood. Contact us online to stop the process or call the firm to schedule an appointment.
Message Our Staff
For any questions, inquiries, or to set up a consultation with us, please fill out the form below.