Law Office of James L. Keenan

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James Keenan Law

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TXT 916.715.6145

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Contact me for a free consultation!

PH (916) 448-6923

TXT (916) 715-6145

EMAIL James now!

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Sacramento Bankruptcy & Debt Relief Attorney

Get news, tips and information about bankruptcy filing and debt relief/elimination in Sacramento

Bankruptcy and Wage Garnishments

Bankruptcy and Wage Garnishments

Bankruptcy and wage garnishments are a natural duo. Though they do the opposite, they are often paired together. If you wages are being garnished, your only option often times is bankruptcy. If, that is, you intend to stop the garnishment.

A wage garnishment is a deduction taken out of your wages to pay off a debt you owe. Normally a wage garnishment is placed on your paycheck by a creditor you owe. The wage garnishment is also referred to as an earnings withholding order. Whatever it is called, a garnishment is a collection practice taken by a creditor to be paid. If bankruptcy is not filed by the wage earner, wage garnishments can tap up to 25% of your net pay. The garnishment lasts until the amount owed has been paid. Unless you file for bankruptcy.

wage garnishmentSince a wage garnishment is a form of a court order, it is often imposed involuntarily. You don’t have to allow a garnishment. It is placed there whether you want it or not. Facing such a situation, bankruptcy and wage garnishments often intertwine. Why? Because bankruptcy will stop a garnishment.

As soon as a bankruptcy is filed, the bankruptcy automatic stay is imposed. The effect is immediate. This means that upon filing a bankruptcy, your creditors can no longer collect from you. This includes wage garnishments. This, then, is why bankruptcy and wage garnishments often go together. Take a look at this CNN report on bankruptcy and wage garnishments.

Normally wage garnishments result from judgments. If, for example, you are sued by a creditor and lose, the creditor will win a judgment. Sometimes you may not even be aware of any lawsuit against you and the creditor obtains a judgment without you ever opposing it. This is known as a default. However a creditor wins its claim, a judgment will give it authority to garnish your wages. And unless you file bankruptcy, you are essentially powerless to stop it.

Even if you are garnished for a debt you cannot discharge, bankruptcy can still stop the garnishment. And that may allow you to repay the debt without taking such a toll on your monthly income.

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Debt, Income and Bankruptcy
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Law Offices of James L. Keenan

2600 H St. Sacramento, CA 95816

Phone: 916-448-6923

Fax: 916-442-6524


Office Hours: Mon – Fri 8 a.m. – 5:30 p.m.

Evening Appointments Available

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Disclaimer: The legal information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer or attorney client relationship. Any results set forth herein are based upon the facts of that particular case and do not represent a promise or guarantee. Please contact James Keenan personally for a consultation on your particular matter. This web site is not intended to solicit clients for matters outside of the state of California.