You are working hard to make ends meet, you cannot seem to get ahead, and there is rarely anything left over after expenses and some payment on your debts.
Then, all of a sudden, you’re notified by your employer that your wages are subject to garnishment, or “income execution” in New York.
Upwards of ten percent or more of your paycheck is being withheld for payment to one or more of your creditors. The process will continue until the debt is paid in full. Money you need to pay the rent and keep food on the table is being diverted to your creditors. What do you do now?
Assuming it is too late to vacate the judgment because you were not properly served with the summons and complaint, there is very little to do to stop the garnishment. Fortunately, filing for bankruptcy can provide you with the help you need.
Bankruptcy stops garnishments, and the mere filing of a bankruptcy petition creates an “automatic stay” of all creditor action to recover against you. If you follow through to completion of your chapter 7 bankruptcy case, the discharge order entered by the court at the end of your case prohibits the garnishing creditor, and other creditors, from collecting against you. In short, your debt obligations are eliminated or discharged and you are off to a new or fresh start. No more garnishments, no more creditor collections, no more creditor harassment. You now have a clean slate.
If you are being garnished or hounded by creditors who will not leave you alone, call my office at 914-385-1032 to make an appointment to explore how bankruptcy might work for you.
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