Helping Clients Throughout Calhoun, Talladega, Etowah, Marshall, Dekalb, Cleburne, Clay, St. Clair & Cherokee Counties
Lawsuits and wage garnishments go hand in hand. Lawsuits are a major reason clients contact our firm – they might be facing a lawsuit from a creditor for not paying a certain debt, and that lawsuit could result in a wage garnishment if not properly dealt with. Let us put our decades of experience to use as we help guide you through these tough financial situations.
For professional, welcoming, and affordable legal representation when you are facing a bankruptcy lawsuit or are suffering from garnished wages, call us at our number (256) 733-6102.
How Filing Bankruptcy Can Stop Lawsuits
Perhaps one of the most important advantages filing for bankruptcy offers is the automatic stay. When a debtor files for bankruptcy, such as Chapter 13, an automatic stay prevents creditors from pursuing any collection activity, such as filing a lawsuit to collect on your debts.
As bankruptcy involves a person’s debts and assets, only the bankruptcy court, and not the creditor, has the power to decide any case involving the non-payment of debt, including:
- A credit card balance
- Money related to a contract breach
- Money involved in a financial dispute between business partners
- Compensation from a personal injury case (e.g., a traffic accident)
- A home foreclosure.
Bankruptcy, however, will not stop all cases and an automatic stay will not halt criminal lawsuits, divorce actions, and child custody and support cases.
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A wage garnishment is when a court issues an order that requires an employer to withhold a portion of an employee’s paycheck to send directly to a person the employee owes money to. Generally, garnishment lasts until the debt is fully paid, but bankruptcy can change that. Note that a creditor must first sue the debtor, win, and then obtain a court order to garnish wages. As a result, a lawsuit is critical for fighting wage garnishment; if a creditor wins a lawsuit, or if the lawsuit is not properly handled, the creditor can legally garnish the debtor’s wages.
Filing for bankruptcy can stop wage garnishment (except in the case of child support, alimony, or other non-dischargeable debts). After filing, an automatic stay will go into effect that can stop the wage garnishment action.
Questions About Your Legal Situation? Give Us a Call: (256) 733-6102.
If you are facing a debt-related lawsuit or have questions about how to navigate the consequence of wage garnishments following a lawsuit, contact our firm for legal assistance. We have decades of experience helping clients navigate their financial hardships, especially in relation to lawsuits and wage garnishments.
Schedule a free consultation with our attorneys at Cobb Law Firm, LLC to discuss your next steps. We will help you protect your financial future. Call (256) 733-6102 to get started.
- File debt consolidation bankruptcy with $0 down.
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