FREE CONSULTS – SAFELY FROM YOUR HOME 1-855-423-6568 HOME ABOUT US CONTACT US LOCATIONS VIDEO LIBRARY PRACTICE AREAS ATTORNEYS BLOG PODCAST Coronavirus: For important COVID-19 updates and changes from our firm, please make sure to keep an eye on our update page. LEARN MORE GET STARTED TODAY Disclaimer * The use of e-mail or this form for communication with the Bond & Botes Law Offices or any of our individual attorneys does not establish a lawyer-client relationship. By submitting this form you agree that you have read and understand the Disclaimer. I have read the disclaimer HOW TO STOP WAGE GARNISHMENT People who were once reluctant about bankruptcy often change their minds once a wage garnishment starts. Embarrassment is often the first emotion, especially since employers will call you in to discuss it in more detail. After that, you experience its effects on your income and your ability to make ends meet, often making a desperate situation even worse. You likely already struggle at your current income level, now, you have even less to work with while home payments and utilities still remain due. At Bond & Botes, we handle many bankruptcy cases that came about due to the impacts of wage garnishment. Rather than give you lectures on budgeting, we offer personal attention so your bankruptcy filing happens efficiently and effectively. A bankruptcy filing stops wage garnishment in its tracks and gives you control over your financial life once again. It is often the best option for people in need. Laws & Limits Concerning Wage Garnishment Wage garnishment occurs after a creditor enters a judgment. In order to do this, first they must file a lawsuit, serve you with a summons, and, assuming you do not answer it, file for a default judgment. That makes it possible for creditors to collect on that judgment through wage garnishment. This is not a process that happens in a vacuum or on a random whim. Many collection calls contain threats that make consumers feel they are vulnerable immediately. Making those statements is illegal and can expose creditors to liability. Wage Garnishment For Tax Debt For tax debt, you will receive a notice of lien before there is a garnishment. This works the same way as a judgment but without a court process. State agencies can work to collect debt much more quickly than private entities, which exposes you to the impacts quicker. Garnishment starts when the creditor or government agency sends your employer a notice to withhold a certain amount of your paycheck and send it to them. This amount varies by the type of debt and fortunately, there are limits. Alabama limits the amount garnished to 25 percent of disposable earnings, which is consistent with federal law. For child support obligations, this increases up to 60 percent. Mississippi has the same limits and Tennessee allows additional options, including the slow pay filing. While the limits and options can make this situation a little more bearable, the problem is that people facing wage garnishment are already struggling. Losing 25 percent of disposable income may not have a big impact for people with higher incomes but for those suffering a recent job loss and reduced wages, there is a tremendous impact on paying rent, utilities, and keeping food on the table. For clients in that situation, bankruptcy is frequently the most effective course of action. How Bankruptcy Can Stop Wage Garnishment Filing bankruptcy immediately institutes an automatic stay. Once instituted, creditors cannot contact you about the debt and must put their collection efforts on hold. This includes garnishing paychecks. Any funds garnished after the bankruptcy filing date must be returned. Doing otherwise is a violation of federal law. This works even with nondischargeable debts like student loans and tax debt. Even these priority debts cannot get past the automatic stay as it affects collection efforts, not whether the debt is discharged. However, be aware that if you have a wage order for child support obligations that will likely continue unless you work out another arrangement. Child support is in a special category, but if you are facing that withdrawal along with other wage garnishments, you will still receive needed relief. You will receive the benefits of the automatic stay whether you file a Chapter 7 or Chapter 13 bankruptcy. Besides giving you needed relief from debt, bankruptcy also takes control away from the creditors and puts it with the court. This gives you time to regroup and regain control of your finances. If you are ready to shed the fear of wage garnishment and experience relief from your debt, contact Bond & Botes today. We have offices in Alabama and Mississippi with many convenient office locations. Ask for a free initial consultation and enjoy your full paycheck once again. Contact Us Disclaimer * The use of e-mail or this form for communication with the Bond & Botes Law Offices or any of our individual attorneys does not establish a lawyer-client relationship. By submitting this form you agree that you have read and understand the Disclaimer. I have read the disclaimer Practice Areas Personal Bankruptcy Business Bankruptcy Lawsuit Defense Social Security Disability Lawyers Collection Harassment Security Clearance Concerns Telephone Harassment VA Disability Credit Report Disputes Student Loan Problems Tax Issues Military Law Personal Injury Merit Systems Protection Board (MSPB) Appeals ONE OR MORE OF OUR LAWYERS HAVE RECEIVED THESE AWARDS AND/OR RECOGNITION At Bond & Botes, we now offer full service bankruptcy consultation and filing over the phone or by video from the comfort and safety of your home or office. Please call 1-855-423-6568 or click here to setup your free phone or video consultation. The bankruptcy lawyers at the Bond & Botes affiliated offices serve clients at offices in Anniston, Birmingham, Mobile, Montgomery, Opelika, Decatur, Huntsville, Florence, Haleyville and Gadsden, Alabama; Vicksburg, Hattiesburg and Jackson, Mississippi. Read our disclaimer here. You can view our Privacy Policy here. ALABAMA OFFICES Shelby County Location 15 Southlake Lane, Ste 140 Birmingham, AL 35244 Phone: (205) 802-2200 Florence Location 102 South Court Street, Ste 314 Florence, AL 35630 Phone: (256) 760-1010 Huntsville Location 225 Pratt Avenue NE Huntsville, AL 35801 Phone: (256) 539-9899 Montgomery Location 311 Catoma Street Montgomery, AL 36104 Phone: (334) 264-3363 Decatur Location 605 Bank Street Decatur, AL 35601 Phone: (256) 355-2447 Haleyville Location 903 20th St Haleyville, AL 35565 Phone: (205) 486-3580 Gadsden Location 430-B Chestnut Street Gadsden, AL 35901 Phone: (256) 485-0195 Opelika Location 713 Avenue A Opelika, AL 35601 Phone: (334) 887-7666 Anniston Location 1302 Noble St #2C Anniston, AL 36201 Phone: (256) 344-3559 Mobile Location 1 St. Louis Street, Ste 1002 Mobile, AL 36602 Phone: (251) 216-0110 Cullman Location 200 Second Avenue SW Cullman, AL 35055 Phone: (256) 739-9866 MISSISSIPPI OFFICES Jackson Location 5760 I-55 North, Ste 100 Jackson, MS 39211 Phone: (601) 353-5000 Hattiesburg Location 607 Corinne St, Ste B8 Hattiesburg, MS 39401 Phone: (601) 264-7200 Vicksburg Location 1212 Farmer Street Vicksburg, MS 39180 Phone: (601) 638-3400 © 2021 by Bond & Botes Law Offices. 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