If your wages are being garnished for the payment of debts, you are entitled to ask your creditor to put an end to it through various options. It can be done through filing for bankruptcy as well as other methods. If you want to Press The Restart Button and avoid wage garnishment without going through bankruptcy, ensure to speak to a lawyer.
Options to stop a wage garnishment without bankruptcy.
- Requesting a Court-Appointed Trustee
It is possible to stop a wage garnishment by entering into trusteeships. They help avoid garnishment of your salary and protect against harassment from creditors. By entering a trusteeship, you are required to give a certain amount of your income to the trustee appointed by the court. The trustee can further utilize the procured funds for paying off the debts owed to the creditors.
- Eligibility for a Trusteeship
For entering a trusteeship, it is crucial to meet the following criteria:
- The person must properly list all the creditors and the debt owed.
- The person must be able to give away 20 percent of their disposable income to the trustee appointed by the court.
- Objection to the Wage Garnishment Notice
One can end the garnishment of their wage by objecting in court. They can file an objection in court and stop their creditors from garnishing your salary till the court proceeds. You must have valid reasons to support your objection against wage garnishment. It can include creditors not following efficient protocols or taking more funds than you have. You can also file an objection if your creditor is harassing you even after paying off all the debts.
- Debt Counseling
A lot of people suffer financial hurdles even after doing their best. Debt counseling helps individuals effectively utilize their efforts and repay their debts and loans.
You can consider talking to a consumer credit counselor. They help end wage garnishment negotiations with creditors and prepare a repayment plan suitable for your finances. By following the repayment plan agreement, Your creditors will not be allowed to continue wage garnishment.
If nothing works and your loans continue to pile up, filing for bankruptcy would be the last and best choice. After the formal declaration of bankruptcy, an automatic stay is declared, which stops the garnishment of your wage. However, there are various kinds of bankruptcy. Suppose you are unsure about which type of bankruptcy would be suitable to suit your interests. In that case, it is essential to consult a bankruptcy lawyer to get help in your financial decision-making.