Garnishment

By filing bankruptcy, you can stop garnishment.

You should acquire representation from a Maryland Bankruptcy to halt all garnishments. It is not end of the world once your wages are garnished or about to be garnished. A Maryland Bankruptcy attorney can assist you to stop garnishments.

How Does Wage Garnishment Operate?

To garnish someone wages, many creditors have to sue someone and receive a judgment against a debtor. When a creditor obtains a judgment against a debtor, the creditor can request the court to issue an order seeking to garnish your wages. The garnishment is submitted to the person’s employer. The creditor will receive from the employer a percentage until all of the amount of the outstanding judgment is satisfied.

How Much of your Wages are Garnished From Your Paycheck?

According to Federal regulations, there is a limit on how much of your wages can be garnished. The most that can be garnished is 25% of your earnings that is disposable. Most institutions involving the federal government can garnish 15% of your wage having no judgment and being considered as an administrative garnishment. If there are many creditors wanted to garnish your wages the most that can be garnished is 25% of your disposable income or 30 times of the minimum wage has to be your weekly wages, whichever one is lower.

However, child support garnishment is up to 50% of your disposable income if an individual is support a child or spouse without order with a wage garnishment and the most 60% of your disposable earning if you are not supporting a spouse or a child.

Exemptions From Garnishment in Maryland

Except for alimony, child support, or a few taxes, Social Security is exempt from many types of garnishments. In additions, pension, retirement benefits, unemployment benefits, workers’ compensation, student financial aid, disabled, aid to the blind, and other public aids and benefits.

How Does Bankruptcy Protect you From Creditors?

When you file bankruptcy, a person immediately obtain protection from creditors and their method of collecting the debt due to an automatic stay during the bankruptcy proceeding. Any and all collections and garnishments are required to stop at once when an individual files for bankruptcy. Of course, child support payments are an exception to the rule where this type of payments must be paid and cannot go away even after an individual’s debts are discharged through a bankruptcy.

At What Point Does the Bankruptcy Stops a Garnishment?

Once you file your bankruptcy claim with the court, the court mails out a notice to all the creditors that you have provided who the creditors are in the bankruptcy filing and telling them that you are in the bankruptcy process. Once the creditors receive the notice, they cannot garnish any wages from you and stop all and any garnishment except for child support. A bankruptcy attorney in Maryland can assist you to stop the garnishment quickly.

Once the Bankruptcy Proceeding is Done, What Happens to the Garnishment?

The stay stops when the bankruptcy case closes. After garnishment, the creditors are prohibited to garnish your wages as long as the bankruptcy discharges that particular debt. However, if your bankruptcy has been dismissed, the creditors can proceed to garnish your wages.

What is Next?

If the case is dismissed, the automatic stays stop. The creditors can garnish your wages once more. This problem can resolve itself by filing bankruptcy once more and show that the bankruptcy filing is performed in a good faith.

A Bankruptcy Attorney in Maryland can Assist

Receive assistance from a bankruptcy attorney in Maryland that can help throughout the entire process. You can call the Soubra Law Firm at (301) 219-5038 or you can send us an e-mail as to how we can help you. It is important that you receive the attention in your case when it comes to a Bankruptcy filing. If not, the creditors can continue to collect from your wages, and it can affect your credit.

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