Garnishment and bankruptcy
If you owe money to a creditor and they bring the matter to court, they can get a judgment against you for what’s owed. Then, they can ask the sheriff to garnish your wages to pay off that debt: up to 10% of what you earn, or as much as a quarter of your disposable income. That’s money coming right off the top of your paycheck.
Even though there are limits to how much can be garnished, it can be crippling to have this extra deduction taken from your check. Filing for bankruptcy can get you relief: the garnishment will be stopped as soon as the case is filed. If the debt can be discharged (wiped out by law), then the garnishment won’t continue. If it’s not something which can be discharged, getting rid of other debts can free up more income to pay it off.
Bankruptcy laws provide protection for debtors like you. If you’re not sure how to make ends meet with your current income and bills and you live in the Hudson Valley, contact us to see what options the law has for you.