Reasons and Ways to Stop Dayton Bankruptcy Garnishment
In situations of personal debt, creditors may attempt to collect on obligations through wage garnishment. Fortunately, some protections are available against this method of debt collection. Such protections are important because garnishments can have a significant effect on debtor credit ratings and standing with an employer.
When a court judges a person responsible for a debt, an order is sent to the employer. A set amount is deducted from each paycheck, which the employer then forwards to the creditor until the debt is repaid. Even if the debt is paid within a short time frame, the garnishment will remain on the credit report for seven years.
Exceptions to what can be garnished
The following income is exempt from garnishment:
- Social Security payments
- Retirement benefits up to $54,000
- Worker compensation payments
- Unemployment compensation benefits
- Disability assistance payments
- Veteran benefits
- Public assistance benefits are exempt, unless the garnishment is for child or spousal support
Dayton bankruptcy: garnishment can be avoided
It is possible to dispute or prevent a garnishment before your employer is involved and possibly in such a way that can reduce the total debt owed. In order to stop Dayton wage garnishment from occurring, you might be able to enter an agreement with your creditor for payment by another means (called an Agreement for Debt Scheduling). This would require you to pay a portion of your regular income through third party Dayton bankruptcy services such as a consumer credit counseling service. To do this, you need to complete an Appointment of Trustee Affidavit, have it notarized, then submit the affidavit to the common pleas court.
Your payments to the trustee may be equal to what a wage garnishment would have been. But your employer is kept out of the transaction, and your privacy is maintained.
Qualified bankruptcy lawyers can help
Dayton bankruptcy law firms with experience in debt and bankruptcy can help. As with most Dayton bankruptcy law firms, a skilled attorney working on your case can craft a strategy that minimizes the damage to your standing with employers and credit ratings agencies.
Our recognized Dayton bankruptcy lawyers at Thompson and DeVeny Co., L.P.A. provide practical, cost-effective legal representation in matters relating to personal and business debt and bankruptcy. To set up an appointment with any of our attorneys you can call us at 937-684-9347. For more detailed information about our attorneys, visit the Our Attorneys page, or contact us online. We have over 100 years combined experience in the legal profession.