WAGE GARNISHMENT FREQUENTLY ASKED QUESTIONS

WAGE GARNISHMENT FAQS. AZ Bankruptcy Done Better. Phoenix Garnishment Attorneys.

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Wage Garnishment FAQS ANSWER: 

A wage garnishment is a method of debt collection your creditors use to collect payment directly from your paychecks. Therefore, if you have received a summons for any of your debts, you should be wary of an impending wage garnishment order.

Wage Garnishment FAQS ANSWER: 

Your bank has the capability of garnishing your wages, but will likely choose to garnish your bank account directly instead.  However, if you are facing a wage garnishment, contact our Arizona Bankruptcy Attorneys.

Wage Garnishment FAQS ANSWER: 

Your creditors will be able to garnish your wages once they receive permission from the court to garnish your wages. Additionally, the bankruptcy court will grant the request for a garnishment if the creditor has obtained a judgment against you.

Wage Garnishment FAQS ANSWER: 

There are limited options to fighting a wage garnishment. One option is to pay the debt. Therefore, you may be able to work out a payment plan or installment agreement with the creditor, or they may accept a reduced amount. Thus, you can also petition the court to pay in installments.

If paying your wage garnishment debt isn’t feasible in any of these methods, you should consider filing Chapter 7 or Chapter 13 bankruptcy. Plus, if you are being garnished for a debt that is discharged in your bankruptcy, the garnishment is stopped permanently. Otherwise, garnishment will cease until your case is discharged or dismissed.

Wage Garnishment FAQS ANSWER: 

The Automatic Stay is a part of the bankruptcy filing process that prevents your creditors from collecting during an active bankruptcy. Additionally, the Automatic Stay protects bankruptcy filers against not only wage garnishment, but home foreclosure, and vehicle repossession. Therefore, if you think you can benefit from the Automatic Stay in more than one way, you should consult an attorney to discuss your bankruptcy options.

Wage Garnishment FAQS ANSWER: 

A wage garnishment will negatively impact your credit. Therefore, having your wages actively being garnished makes it more difficult for you to obtain a loan.

Wage Garnishment FAQS ANSWER: 

Common debts that wages are garnished include:  student loans, domestic support, taxes, credit cards, court fees, and medical debts. However, any creditor that has gotten a judgment against you can get an order from the court to garnish your wages.  Therefore, you should Contact our bankruptcy team for more information regarding wage garnishment in Arizona.

Wage Garnishment FAQS ANSWER: 

The standard amount that your check will be garnished is 25% (except for child support). Also, that is the legal maximum that your checks can be garnished. Plus, if your wages are being garnished, you can petition the court to show that the garnishment is causing financial hardship. Therefore, if you are successful, the court will reduce your garnishment to 15%, but that is the absolute lowest they can go.

Also, only one creditor can garnish your check at a time, but your creditors can line up for their turn to garnish your wages. Plus, you can expect interest and legal fees to be added onto whatever the original balance was for the debt associated with your garnishment.  Thus, Contact our Phoenix bankruptcy team today.

ANSWER: 

Your employer is required by law to comply with a court order to garnish your wages.

Your employer may not legally terminate you for receiving one order of garnishment, but may choose to terminate you for second and additional garnishment orders.

ANSWER: 

Creditors can have a trickier time garnishing your wages if you are a 1099 employee. In this case, your creditors will likely seek to garnish your bank account instead.

ANSWER: 

The provisions of the Coronavirus Relief, Aid and Economic Security (CARES) Act protect your stimulus check itself from garnishment. Furthermore, it will be safe from creditors who have a garnishment on your wages. However, your creditors may also seek to garnish your bank account.

If you have a negative balance with your bank, they can seize funds from your stimulus check if you deposit it in a linked bank account.

ANSWER: 

Yes. Your employer would have no reason to send a third party any portion of your wages without a valid court order.

ANSWER: 

You may be able to get garnished wages back (if you file bankruptcy) if the garnished wages would’ve been exempt in bankruptcy. The creditor will have to have taken at least $600 and within 90 days before the bankruptcy was filed. This is called a preference action, and the process can take a few months.

ANSWER: 

You will still need to meet the requirements and complete the procedure of a preference action to have garnished wages returned to you. The reason the funds can be returned if you complete a preference action is that it technically isn’t fair to the rest of your creditors for only one of them to receive any repayment when you discharge your debts in a bankruptcy.

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