Most people know the general concept of a wage garnishment, ie, a
creditor taking money directly from your paycheck each payday. However,
how does a creditor get this access? How quickly will it happen if you
do not pay your creditors? How can you STOP it?
Basically, once
you stop paying your creditors, they will begin collection efforts.
Phone calls, letters, and after awhile (6 months to a year) they will
sue you in the County you reside.
When they win, (presumably they
will win, since you really do owe the debt), they will have to file
another motion to begin the garnishment procedure. Once this motion is
granted, they will issue a "Citation to Discover Assets", which is a
hearing you are required to attend, to provide information regarding
your bank accounts, paycheck, etc.
After all these hearings,
which can take up to 6 months AFTER the creditor sues you, they will
likely get a Judges Order for Wage Garnishment. At this point, they
will be entitled to a percentage (usually about 15%) of your gross
wages.
The guaranteed way to STOP A WAGE GARNISHMENT is to file a
bankruptcy. The Automatic Stay that comes into effect upon filing
effectively trumps the Judges Order garnishing your wages. There is no
other way to stop the garnishment other than paying it off.
So,
if you are looking to hire an attorney for bankruptcy, DO IT NOW to
avoid getting a wage garnishment. Once your wages become garnished, it
will be very difficult for you to even pay your month-to-month bills let
alone attorney fees for the actual bankruptcy.
