Wage garnishment is a scary thing to face alone. The good news is that you don’t have to—with the help of a Chandler wage garnishment lawyer, you can stop wage garnishment, get the legal advice you need to manage your debt, and begin building a brighter financial future. Learn more about each of the ways an attorney can help if you’re facing wage garnishment in Arizona.
#1: Challenge the Wage Garnishment
Even if a creditor has already secured a money judgment against you and your employer has already received a garnishment notice, it may not be too late to protect your income with a motion to set aside the judgment. Successfully challenging a wage garnishment in court is possible, but it’s an intricate process that must be executed within a strict timeline.
To challenge the wage garnishment, your attorney will present a legal objection backed by evidence. Valid objections may include:
- You did not receive proper notice of the lawsuit against you
- Your income has already been subject to garnishment and you have no additional earnings left
- There is a legitimate dispute about what a creditor claims you owe
- Your income is exempt, or you do not earn any income
- The statute of limitations has run out
#2: Reduce the Amount of Wage Garnishment
If you’re ineligible to set aside the judgment, your lawyer may still be able to reduce the amount of wages garnished from your paycheck. Generally speaking, a court can order that up to 25% of your non-exempt disposable earnings be diverted towards your creditors.
However, a Chandler wage garnishment lawyer can submit a request for a hearing to possibly get this amount reduced. If your attorney can prove that a 25% wage garnishment would cause undue financial hardship to you and your family, the court may agree to reduce the wage garnishment to as low as 15% of your non-exempt disposable earnings.
Related: What Are My Consumer Rights Against Debt Collectors?
#3: Reach a Settlement with the Creditor
With the help of an attorney, you may be able to reach a settlement agreement with a creditor in lieu of wage garnishment. Although reaching a favorable settlement may be more difficult once a judgment has been entered against you, there are many reasons a creditor might be willing to settle.
If you have an especially large debt, it may take a very long time to repay the debt through wage garnishment alone. In addition, should your employment end, the creditor will stop receiving payment. Finally, should you file for bankruptcy, creditors know there’s a good chance you’ll be protected by an automatic stay and eventually have your debts discharged.
#4: Eliminate Your Debts Through Bankruptcy
Depending on the type of debts you have, filing for bankruptcy may be a viable way to avoid wage garnishment and protect your other assets. There are two kinds of consumer bankruptcy—Chapter 7 and Chapter 13. Chapter 7 bankruptcy, also called a liquidation bankruptcy, is ideal for lower-income individuals with few assets who have large amounts of unsecured debt, such as credit card debt, personal loans or payday loans, medical debt, and past due rent or utility bills.
Many unsecured debts can be discharged in a Chapter 7 bankruptcy, although it should be noted that unpaid child support or spousal support, certain tax debts, and student loans usually cannot be discharged through bankruptcy.
For those with a higher income, more assets, and/or a high amount of secured debt, Chapter 13 bankruptcy may be a better alternative. In Chapter 13 bankruptcy, existing debts are restructured into a three to five-year repayment plan with monthly payments you can afford. You have the chance to avoid repossession of your home or vehicle, and any remaining debt after your repayment plan may be eligible for discharge.
Related: What You Need to Know About Bankruptcy and Mortgage Loans
Contact a Chandler Wage Garnishment Lawyer Today
If wage garnishment is on the horizon, or has already begun, a solid first step is to confer with a Chandler wage garnishment lawyer who can review your case and explain all your legal options.
At Lerner and Rowe Law Group, we offer free, no obligation consultations to anyone in search of solutions to overwhelming debt. Our experienced legal team is well-versed in matters of wage garnishment and bankruptcy, and will review the details of your case at no cost. You can schedule your free consultation today by calling us at 602-667-7777.
You can also get connected with a representative online using our LiveChat feature, or send us a message using this convenient form. Concerned about the cost of hiring legal representation? Find out more about filing a $0 down bankruptcy and check out our affordable payment plans.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.