An illness, unemployment, divorce, or some other unforeseen life circumstance may throw you into a tailspin. Wage garnishment is the last thing you need to have to deal with. There are bankruptcy laws that may secure you from this form of debt collection. However, it is crucial that you act swiftly. Your delay in acting could mean the difference in being protected or being unprotected. The US Congress changed the bankruptcy laws in April 2005; however, debtors can still stay wage garnishment by hiring a bankruptcy lawyer. Your bankruptcy lawyer that specializes in this field will know all of the intricate laws that could assist you. This is one of the most crucial decisions you may make to protect you from wage garnishment. Filing a bankruptcy should be preceded by credit counseling. In fact, the new Congressional laws mandate credit counseling from an approved agency. Your bankruptcy lawyer could help you find one.
Once you complete this credit counseling, your lawyer is free to file the bankruptcy order. Strict stipulations oversee who could file a chapter 7 bankruptcy. Filing either a chapter 7 or chapter 13 bankruptcy can provide the needed protection from wage garnishment. Time is crucial. You must act quickly to make sure you're protected from your lenders. Then new laws require the court to apply the means test and the disposable income test to the debtor. Those debtors with higher incomes may be limited to filing a chapter 13 bankruptcy. A chapter 7 is a full liquidation of all assets. In this position, the debtor gets to start completely over with a clean slate. And you are protected from wage garnishment. The web can be very useful when trying to determine on an attorney in your area. The attorney you hire will be your best protection against the difficult procedure. That is why it's crucial to get an attorney that's familiar with wage garnishment and all recent bankruptcy laws.
Attorneys that don't specialize may not be as well versed in the new laws. This may make a huge difference in your situation. During your bankruptcy procedure, the web is a good resource also. Bankruptcy message boards can provide helpful information on wage garnishments and other bankruptcy laws. Interacting with others that are going through this same procedure could be useful also. Bankruptcy could make you feel alone and isolated. You may even feel guilty about your finances. It's important that you get the support and information that you need to make it through this difficult time. Getting accurate bankruptcy information can help stop a wage garnishment or even a foreclosure. Knowledge is truly power. The more accurate information you acquire the better you may handle your situation.
In conclusion, you don't have to face wage garnishment. There are bankruptcy protections that could stay this action. However, it's critical for you to act quick and decisively. Don't let yourself get stuck in a hopeless rut. A good bankruptcy lawyer and support group could retain you moving forward.
