Can Bankruptcy Protect Me from Wage Garnishment in Lewis Center, Ohio?

The short answer is yes.

While it’s never a good situation to be in, if you can’t afford to pay off your debt and are in danger of having your wages garnished, bankruptcy may be your best option. Bankruptcy stops all collection, repossession, and eviction actions in their tracks. The debt falls away entirely at the end of the process.

If you’re a resident of Ohio and fall behind on your credit payments, your collection company could take out a lawsuit against you and be granted to take up to a 25 percent withdrawal on your paychecks. 25 percent is the general maximum, however, there are some exceptions. For example, some government-related debts, such as unpaid traffic fines, don’t require a court order. Others include court-ordered child support, outstanding student loans, and taxes.

Unpaid child support can cost you up to 60 percent of your weekly available income. If you’re actively supporting a child, a sick and/or disabled spouse, it can be up to exactly half of your weekly income. In addition, if you’re late on your payments by 12 weeks or more, other five percent could be added to your garnishment.

Unpaid federal taxes could take up to 15 percent. The IRS also considers your dependents if you have any and your typical deductions.

Unpaid student loans could take up to 15 percent.

The 25 percent limit applies if there’s more than one judgment against you. So, for example, if there are two and the first is already taking out 10 percent, the second can take out up to another 15 percent.

However, you still have certain rights.

First, you must receive a legal notice.

If you have any reason to believe that the amount has been miscalculated, you have the right to dispute that. Any non-wage forms of income alone, such as Social Security or Veterans’ Benefits, can’t legally be garnished. However, they will be just as quickly taken out once they’re in your bank account.

If you work for a company, your employer can’t legally fire you for one wage garnishment. However, they can if you have two or more garnishments.

Most creditors won’t go to the courts automatically if you’ve missed one payment. You must have missed a few to several payments entirely within a certain period of time.

If you can’t afford to pay off your debt and are in danger of wage garnishment or have already had an order established against you, please contact a local bankruptcy lawyer today.

If you have concerns about wage garnishment if you live in Delaware County and Lewis Center, Ohio, we welcome you contact Kathy Granger today for your free consultation.