Being subjected to wage garnishment can make a difficult situation even worse. With inflation on the rise and economic hardships all around, having your wages garnished could mean that you will not be able to pay rent or put food on the table.
Should you face the hardship of wage garnishment, here are three options for you to consider.
File for an exemption
You can protect certain types of income from garnishment:
- Social Security
- Disability
- Retirement fund
- Spousal or child support
Additionally, there are limits as to how much of your wage a creditor may take. If you use your wages to support dependents or if you have protected income, filing for an exemption is a good idea.
Vacate judgment
Vacating a judgment makes it invalid; without a legal judgment, wage garnishment cannot occur. Grounds to vacate a judgment include evidence that the debt is invalid or fraudulent.
If you believe that the debt is invalid and you meet the one-year deadline for filing, this legal process may relieve you of the debt entirely.
Chapter 7 bankruptcy
It may be that you are ready for a fresh start, and Chapter 7 bankruptcy is one way for you to get one. If your debts are overwhelming, filing Chapter 7 discharges your debt and issues an automatic stay on wage garnishment. It also stops collection activities like phone calls and repossessions.
Once you finish the bankruptcy process you may still owe support, taxes or student loans, but you no longer owe the rest of your debt and you can start over fresh.
These three options can help you protect your income and lifestyle if a creditor garnishes your wages.