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Chapter 7 bankruptcy can help you stop wage garnishment

On Behalf of | Apr 8, 2020 | Chapter 7 Bankruptcy

Some collection agents are ruthless when it comes to getting the money they say you owe. If they put the pressure on you and aren’t able to get payments, they might choose to turn to the court to get an order for collection. This means that they will take money directly out of your paycheck to cover the debt. Your employer must comply with the garnishment order when they receive it. There are a few things to remember about this process in Connecticut.

Garnishments can include any amount up to 25% of your disposable income. This means your gross compensation per week minus these expenses:

  • Federal employment tax
  • Federal income tax
  • Union dues and initiation fees
  • Normal retirement contributions
  • Health insurance premiums
  • Group life insurance premium
  • Other federal tax levies

If an employer receives an order for wage garnishment, they can’t start withholding pay until the check that occurs after the 20th day following service of the documentation to the employer. The employer must immediately notify the employee when they receive the paperwork.

An employee has the right to ask the court to partially or totally exempt their wages from the judgement. If they do this, the employer can’t withhold the garnishment until they receive new documentation from the court. Employers can’t discipline employees because they have a garnishment.

For some individuals, the financial strain they are under is too great to overcome. These individuals might opt to file a bankruptcy, which can provide them with a fresh financial start. Typically, a Chapter 7 filing is a swift option for people who qualify. Contact us to find out how bankruptcy can help you or to learn more about your legal options.