Recently in Creditor Judgments Category

Can Two Creditors Garnish Up to 50% of Your Take-Home Pay?

iStock_000007320537XSmall.jpgUsually, when a person is sued by a creditor or is served with a garnishment order, a debtor/employee's first recourse is to contact a bankruptcy attorney, requesting that the attorney file a Chapter 7 or Chapter 13 bankruptcy petition on their behalf. While bankruptcy, is no doubt, an efficient and effective means of eliminating a wage-garnishment order, it's not always a feasible option. As I stated in "What Are All My Options For Dealing With my Overwhelming Debt?" blog post, one-size does not fit all. Specifically, there are many reasons a debtor-employee would not wish to file bankruptcy. For example, the employee-debtor has no other debt or is judgment proof. It may surprise many readers to learn that sometimes, challenging a wage-garnishment is better than filing bankruptcy, especially if they are able to challenge a wage-garnishment order--and win; or, challenge a wage-garnishment order and pay but a small fraction of the original wage-garnishment order amount. The next question is this: if a second judgment-creditor attempts to garnish an employee-debtor's wages, is it time for the debtor-employee to file bankruptcy--for fear the second creditor will also seek an additional 25% of the employee-debtor's take home pay, for a total of 50%?

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"Help!, the Sheriff Just Levied My Bank Account!"

iStock_000005871379XSmall.jpgThe inspiration for this post comes from a call I received today. The distressed caller stated that a "bottom feeder" creditor "stole" my money from my bank account. After a few minutes of talking to this prospective client, it became clear to me that she knew nothing about her legal rights. She also reminded me that knowledge is power--because, had she had a little knowledge about her legal rights, she could have reversed and stopped the sheriff's bank levy.

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"My Wages Were Just Garnished! Is Filing Bankruptcy The Only Way To Stop My Wages From Being Garnished?"

iStock_000017413305XSmall.jpgAt the Law Office of Linda C. Garrett, a virtual online law office, providing full-scope and limited-scope legal services in the practice areas of consumer law, bankruptcy, mortgage (HAMP) and family law, I receive about one to two calls per month about wage-garnishment issues. The next statement that usually comes out of the prospective client's mouth, after they have informed me that they just learned their wages were garnished, is, "what's the soonest I can file bankruptcy?" As all my clients know, I only recommend bankruptcy when it is necessary. For me, bankruptcy is necessary only when the person has no other option to stop the garnishment. For many individuals, they are surprised to learn that they can stop the wage garnishment without filing bankruptcy. It is possible? Yes, it is!

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"What Does the Term 'Judgment Proof' Really Mean and Should I File Bankruptcy if I am Judgment-Proof?"

images[9].jpgBy 2008, resulting from the drecession, I was receiving approximately, 20 calls per month from individuals requesting that I file a Chapter 7 or Chapter 13 bankruptcy on their behalf because they were, amongst other things, being harassed by their creditors. At the Law Office of Linda C. Garrett, an online virtual law office, providing full-scope and limited-scope legal services in the practice areas of consumer law, mortgage and HAMP law, bankruptcy law and family law (to include unbundled legal services), I always caution my clients against making bankruptcy their first option--and instead, ask that they consider it their last option.

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