The law gives creditors a variety of tools for collecting on debts, including lawsuits and property liens. Once they have obtained a judgment, creditors may be empowered to seek a wage garnishment to collect the money they're owed, which may come directly from your paychecks. The Gil Law Firm, one of Dothan's leading Chapter 13 and Chapter 7 bankruptcy professionals, would like to answer some questions about this often-misunderstood aspect of the law.
3 FAQs About Wage Garnishment, From Dothan's Chapter 7 Bankruptcy Experts
Will My Employer Find Out About Wage Garnishment Actions?
In some states, you may be able to prevent your employer from finding out about the garnishment order by sending the funds in yourself, but in many jurisdictions the order will be forwarded directly to your employer. If your employer is required to send a portion of your wages to the court, they will, of course, be informed.
Can I Be Fired Due To Wage Garnishments?
Although complying with a wage garnishment order can be extremely onerous to your employer, state and federal law prevents them from terminating your employment. However, if you have multiple wage garnishment orders, your employer may be within their rights to fire you.
Can Wage Garnishments Be Prevented?
Fortunately, you can put a stop to almost all collection activity, including wage garnishment activities, by filing for bankruptcy. Along with helping you discharge most of your debts, both Chapter 13 and Chapter 7 bankruptcy include an automatic stay, which requires your creditors to immediately cease garnishment, harassment, and repossession activities.
The attorneys at The Gil Law Firm have more than 15 years’ experience in their field, and are ready to help you make the most of your Chapter 3 or Chapter 7 bankruptcy petition. To learn more about how to file for bankruptcy, visit their website or schedule a consultation with an attorney by calling (334) 673-0100 today.