How Long Does It Take Before A Creditor Can Garnish My Wages?

How Long Does It Take Before A Creditor Can Garnish My Wages?

How Long Does It Take Before A Creditor Can Garnish My Wages? 240 200 MISHIYEVA LAW Bankruptcy Lawyer NYC

How long does it take before a creditor you owe money to can garnish your paycheck? In practical terms, about three months. How much can each particular creditor get? Typically ten percent of your gross earnings that is above minimum wage. Consider the following calculation: lets say you make $20.00 an hour, and the minimum wage in New York State is $8.75. The $11.75 difference is therefore exposed to the likes of your creditors. If you work forty hours a week, then that mere $11.75 can quickly amount to $450.00 a week that will be garnished from your paycheck. That’s a significant amount.
Do creditors have the power to freeze your bank account? Assets that are above $2100 per institution can be restrained.

If you are at risk of having your wages garnished, you should consult with an experienced debt and bankruptcy lawyer who can review the facts of your situation and discuss all options available to you. You should consider filing for bankruptcy if your debt is high and options are limited. You may be able to negotiate a settlement with your creditors as an alternative to bankruptcy. However, keep in mind that there are tax consequences of settling debts outside of bankruptcy. The amount that is forgiven by the creditor will be considered “income” to you, and you will have to pay income tax on that portion of the debt that was written off. On the other hand, in bankruptcy there are no tax consequences associated with discharging debts. Whether you are filing for a Chapter 7 or Chapter 13 bankruptcy, the instant relief provided by the court (“automatic stay”) prevents wage garnishments, bank levies, and other enforcement procedures. If you have limited assets and qualify for a Chapter 7, all your debts may be discharged with no negotiations with the creditors necessary.

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