There are many negative consequences to owing a significant amount of debt. In addition to the stress of watching your balances increase and getting calls from debt collectors, you may also get notice of a wage garnishment. This means that your New Jersey employer will be withholding a portion of your wages for the purpose of paying off your debts.
Receiving only a portion of your earned wages can be incredibly frustrating and overwhelming, possibly making your financial situation worse. Fortunately, there are limits to this process, and there are legal ways by which you can make it stop. It may also be helpful to understand how the wage garnishment process works.
What does wage garnishment mean?
This is the process of a having an employer withhold a portion of a debtor's wages. This is a rather severe step, and this is only possible by seeking permission from a court. Wage garnishment only happens when a person is seriously behind on his or her financial obligations. It may be beneficial for you to understand the following about this process:
- Even after receiving the court's permission during a hearing to withhold a portion of your wages, the employer can only withhold a certain amount.
- It is illegal for an employer to fire you because you experience wage garnishment.
- By filing for bankruptcy, the automatic stay will go into effect. This will halt all collection practices against you, including wage garnishment.
You may feel embarrassed by wage garnishment, and you may have legitimate fears regarding what debt collectors may try to do next. These are valid concerns, and there are ways you can take back control over your financial future. If you are dealing with the ramifications of overwhelming debt, it is beneficial to take time to explore the legal options available to you.
Why choose bankruptcy?
Bankruptcy is about more than just making wage garnishment stop. When you file for bankruptcy protection, you will have a path back to a financial future that is free from certain types of debt. While this may not be your first choice, there are many benefits to either Chapter 7 or Chapter 13.
If you are dealing with debt and feel unsure about the options available to you, it can be helpful to start with a complete evaluation of your case. It is always beneficial to fully understand your choices before you make an important decision that will impact your financial future.