Chapter 7 Bankruptcy Rights to Protect and stop wage garnishment after bankruptcy

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Your creditors will start garnishing your wages through obtaining a court order in a judicial process. Wage garnishment is a court order for an employer to withhold a specified amount of your wages or income as repayment for debt. If a lawsuit is filed against you and you don't show up to court, there's a greater likelihood that your wages will be garnished. Here, your creditor will obtain a default judgment against you. There are wage garnishment federal limits that prevent creditors from garnishing more than 60% of your wages in the most extreme case.

A Chapter 7 bankruptcy is one of the most powerful means to stop garnishments of wages. Garnishments can diminish your hard-earned income making it nearly impossible for you to afford basic necessities. If you file for Chapter 7 bankruptcy, your automatic stay will stop all lawsuits and wage garnishments, effective immediately from the time that you file your petition. You may still get your full pay check and if your debt is dischargeable, you will likely be able to eliminate the entire outstanding debt in bankruptcy if you qualify.

Ways many Consumer Debtors Stop Wage Garnishment in San Jose California

1.       Filing Chapter 7 Bankruptcy in Federal Court

One legally approved way to stop a wage garnishment is by filing for bankruptcy. Filing bankruptcy petition in federal court activates the power of automatic stay that prohibits all of your creditors from taking any action to collect or enforce debts and judgments temporally until the court issues a relief from automatic stay or decides on the case.  The creditors are also prohibited from making written request for payments or notifying credit reporting bureaus of an unpaid debt. Most people file bankruptcy not only to stop wage garnishment but to start the settlement and negotiation process.

2.       Claim of Exemption

One may also request an order from a judge to stop a wage garnishment against him or her. This may be initiated by filing a Claim of Exemption in court by the debtor asking the judge to rule in his favor and stop the wage garnishment. This allows you to request to stop a wage garnishment or at least the amount of your wages that are being garnished. Your case will be stronger if you show financial hardship or that the wage garnishment is making it very difficult for you to make a descent basic living. Proper and detail documentation of hardship is very important.

3.       Pay Debt Owed in full

A debtor may approach the creditor or the bankruptcy court and offer to pay the in full and request that the wage garnishment be vacated. Here, the creditor will not have any debt to collect any longer since all debts have been paid in full by the debtor. The bankruptcy court will immediately issue an order to stop the wage garnishment.

4.       Settle With the Creditor

Wage garnishment may also stop when there is an agreement between the debtor and the judgment creditor. A good approach will be to present an offer of settlement to the creditor. Your offer should provide a detailed plan on how you want to make the payment and the source where the money will come from. Proper documentation is vital to reaching a good agreement or settlement with your creditor.

Our local experienced bankruptcy and debt relief lawyers and attorneys at the law office of Geoffrey Nwosu located in San Jose California, have worked hard for many years to provide legal services to individuals and businesses in Santa Clara, Alameda, San Mateo and San Francisco bay area. We specialize in bankruptcy and debt relief and we help people to stop creditor harassment, creditor phone calls, wage garnishment, judgment liens, foreclosures, and rebuild their credit. We are very aggressive and hard working. You have rights. We can help you. We have helped many clients like you.

Please contact the Bankruptcy Debt Relief Law Office of Geoffrey Nwosu, attorney at law, located in Silicon Valley, California at 408-912-5983 for a confidential free consultation

Geoffrey Nwosu San Jose ca bankruptcy attorney & lawyer Disclaimer: California bankruptcy attorney & lawyer, chapter 7 bankruptcy, chapter 13 bankruptcy, personal & consumer bankruptcy, foreclosure or other bankruptcy debt relief laws information presented at this site should neither be considered as a legal advise nor formation of attorney, lawyer or counsel relationship. Do not take any information presented here as a promise or guarantee. Contact our San Jose Oakland San Francisco bankruptcy & debt relief law firm to discuss your legal options on your particular case with our attorneys & lawyers. We do not take cases from outside the state of California




Law Offices of Geoffrey C. Nwosu

1710 Hamilton Ave.
San Jose, CA 95125

Phone:   
(408) 912-5983
(408) 375-7703
.

 

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