Imagine working hard to make ends meet, only to find that a portion of your hard-earned wages has been garnished to pay off a debt. Wage garnishment can be a challenging and stressful experience, leaving you with even less money to cover your living expenses. In Louisiana, filing for bankruptcy might be the solution to stop garnishment of wages and provide financial relief.
In this blog, we’ll discuss wage garnishment, how bankruptcy can stop it, and the importance of working with an experienced bankruptcy attorney like Diment & Associates.
What Is Wage Garnishment?
Wage garnishment is a legal process that allows a creditor to collect payment directly from a debtor’s employer to repay an outstanding debt. In Louisiana, creditors must obtain a court order to garnish wages (for creditors with a statutory right, a court order wouldn’t be necessary), and certain restrictions apply to the amount that can be garnished. Wage garnishment can be used to collect various types of debts, such as unpaid taxes, child support, loans, and credit card debts.
Can Bankruptcy Stop Garnishment of Wages in Louisiana?
Filing for bankruptcy can immediately and permanently stop wage garnishment in most cases, providing much-needed financial relief to debtors. The key to stopping garnishment through bankruptcy is the automatic stay, a legal provision that goes into effect as soon as the bankruptcy petition is filed.
Types of Bankruptcy and the Automatic Stay
There are two primary types of personal bankruptcy: Chapter 7 and Chapter 13. In both cases, the automatic stay halts most collection activities, including wage garnishment, as soon as the bankruptcy petition is filed. The automatic stay provides debtors with breathing room to reorganize their finances and work out a repayment plan through the bankruptcy process.
Exceptions to the Automatic Stay
While the automatic stay stops most wage garnishments, there are some exceptions. For example, the automatic stay does not apply to child support or alimony payments. If your wages are being garnished for these obligations, filing for bankruptcy may not provide immediate relief.
Discharge of Debt
Bankruptcy can also eliminate or discharge certain debts, effectively stopping wage garnishment permanently. In a Chapter 7 bankruptcy, eligible debts are discharged after the bankruptcy process is complete, while in a Chapter 13 bankruptcy, a repayment plan is established to pay off a portion of the debt, with the remaining balance discharged at the end of the plan.
Filing for Bankruptcy To Stop Garnishment
If you’re facing wage garnishment and considering bankruptcy as a potential solution, it’s essential to act quickly. The sooner you file for bankruptcy, the sooner the automatic stay will go into effect, stopping wage garnishment and providing financial relief.
Working With an Attorney to File for Bankruptcy
Navigating the bankruptcy process can be complex, and working with an experienced bankruptcy attorney like Diment & Associates is crucial. Our bankruptcy lawyers in Baton Rouge can help you understand your options, determine the best course of action, and guide you through the bankruptcy process.
We can assess your financial situation, explain the implications of filing for Chapter 7 or Chapter 13 bankruptcy, and develop a strategy tailored to your specific needs. With the guidance and support of a skilled bankruptcy attorney, you can make informed decisions about your financial future and take the necessary steps to stop wage garnishment and regain control of your finances.
By working with an experienced bankruptcy attorney like Diment & Associates, you can make informed decisions, protect your rights, and take the necessary steps to stop wage garnishment and regain control of your financial situation. Don’t let wage garnishment dictate your life; take action now and reach out to our team of skilled bankruptcy attorneys in Baton Rouge to explore your options and start your journey toward a brighter financial future.