Should You File Bankruptcy to Stop Wage Garnishment?
You took out a loan, got into more financial trouble, and can't pay it back. Now they have sued you and your wages are being garnished, leaving you in an even worse situation. Read on to find out what happened and how filing bankruptcy will help!
DoNotPay can help you file for bankruptcy and answer tough questions. The filing procedure is made easier using our technology. Find out whether DoNotPay can help you with this tough financial choice.
What is Wage Garnishment?
Once legal challenges have been addressed, wage garnishments are mandated by the court. If you have a history of non-payment, the courts may mandate this payback option. In order to get your paycheck, your company must withhold a portion of your salary and send them to the creditor. When it comes to taking money out of a paycheck, the courts are in charge. If you're already having trouble paying your fees on time, you may find yourself in even more of a jam.
What is Bankruptcy?
If you're facing repeated wage garnishments and phone calls from creditors at all hours, you may consider declaring bankruptcy. Bankruptcies come in a variety of forms, although Chapter 7 and Chapter 13 are the most frequent. In order to pay off secured debt and discharge unsecured debt, Chapter 7 liquidates all non-qualifying assets.
Chapter 13 is more of a court-ordered repayment arrangement. Both of these measures are designed to keep your wages safe from subsequent pay garnishments and phone calls. Wage garnishments, on the other hand, may be ordered by the court, but they will be limited to the amount of money that you make.
What Bankruptcy Cannot Do
Most people see bankruptcy as a last choice, a desperate attempt to get out of their existing conditions. Although it does stop further collection from creditors individually, it does not completely delete it from the record. Even if it takes wage garnishment, you must keep your promises, no matter what. Taxes, student debts, alimony, and child support cannot be avoided.
How Long Does Bankruptcy Stay in Your Credit Record
Depending on whether you are filing for bankruptcy under Chapter 7 or Chapter 13
|Chapter 7||10 years from filing date|
|Chapter 10||7 years from filing date|
How Long Does it Take to File for Bankruptcy?
Bankruptcy is a lengthy process that requires a lot of perseverance. The filing procedure is meant to take around five months. Prior to the liquidation, all of your creditors will be notified and given the opportunity to make claims against you. It is after this hearing that the bankruptcy judge will rule on your case. Be aware that bankruptcy will remain on your credit record for seven to ten years!
How to File Bankruptcy on Your Own
In most cases, bankruptcy lawyers are consulted to assess a person's bankruptcy eligibility, type, and timing. Everything, like the 609 letter and the debt verification letters, are put together by your lawyer once you pay the retainer charge as well as any filing expenses. Paying the trustee is a must if you want the process to continue. The procedure is time-consuming and will need the assistance of a professional.
File bankruptcy with the Help of DoNotPay
A bankruptcy filing shouldn't need many days of time off work and further financial loss. It's possible that DoNotPay may assist you in filing for bankruptcy.
If you're not sure where to begin when it comes to filing bankruptcy, DoNotPay has you covered in five simple steps:
How to file for bankruptcy using DoNotPay:
If you want to file for bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
And that's it! Once done, the court will give you:
- Your bankruptcy case number
- The name of your bankruptcy trustee
- The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
Why Use DoNotPay to file bankruptcy
When it comes to filing for bankruptcy, there are various things that DoNotPay may give. DoNotPay may be able to help:
- File with DoNotPay just about everywhere. They work will all courts dealing with bankruptcy.
- Filing and response times are quick and efficient.
- A safe place to save all of your important documents, with everything you need to be included
- Simply follow these instructions for the best results.
What Else Can DoNotPay Do?
Has your bankruptcy file been finalized to your satisfaction? When it comes to saving even more time and cash, the following material from DoNotPay may be helpful.
Take advantage of DoNotPay's assistance at this trying time!
How to Stop Wage Garnishment — Frequently Asked Questions
How to stop wage garnishment for medical bills?
You can file bankruptcy to get rid of medical debts and stop the wage garnishment order. You can use DoNotPay to find out your best options.
How to stop wage garnishment on my credit card debt?
If your credit card issuer hasn't sent your debt to collections, you should call your issuer and explain your financial hardship. You can also use DoNotPay to negotiate your bills.
What is a Claim of Exemption for wage garnishment?
A Claim of Exemption (WG-006) is a form of wage protection. You must file with the Sheriff to explain why some of your wages should be excluded from being garnished. You can find a step-by-step guide on how to complete and file the forms here.