You may have every intention of paying off your outstanding debts. But you may only be able to stretch your paycheck so far. Not to mention, you also have to worry about leaving enough for your daily, basic needs, such as food, clothing, utilities, shelter, etc. So it may do nothing but further debilitate your financial footing if your paychecks begin getting garnished, due to your missed debt repayments. In fact, you may not even be sure if it is fair, sustainable, or legal for this to happen. Nonetheless, read on to discover whether an automatic stay can stop wage garnishment and how a seasoned Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you obtain the appropriate protections.
Under what circumstances might I be made the victim of wage garnishment?
First of all, wage garnishment is a debt collection strategy in which your outstanding creditors may take money directly out of your paycheck. Of note, your creditors may or may not need a court order to take this action, depending on the debt type. With that being said, you may be made the victim of wage garnishment if you are behind on paying off any of the following types of debt:
- You are behind on income taxes.
- You are behind on court-ordered child support payments.
- You have defaulted on your federal student loans.
- You are behind on credit card debts, medical bill debts, bank loan debts, and private student loan debts.
Further, in New York State, a creditor may be able to take 10 percent worth of your gross income or 25 percent of your disposable income to pay themselves back, which amount is less. However, it must be made clear that a creditor must leave you with at least 30 times the state minimum wage in weekly earnings. This means that as of 2024, in Rockland County, you cannot be left with less than $450 per week on your paycheck.
Is it possible for an automatic stay to stop wage garnishment?
Wage garnishment may have you struggling financially even more than you once were. So if you do not like this happening to you, consider responding with a bankruptcy declaration. This is because an automatic stay goes into effect immediately after the New York State bankruptcy court receives your bankruptcy petition. Specifically, an automatic stay may bar a majority of your outstanding creditors from initiating or continuing their collection activities.
Therefore, you may rest easier knowing the automatic stay applies to the creditors garnishing your wages. However, it may not apply to the creditors collecting for your unpaid child support payments, as an example. Plus, an automatic stay may not be guaranteed, or at least a permanent guarantee, in every bankruptcy case.
We understand just how stressful yet critical this time seems to be. So if you have any further questions or concerns, please do not hesitate to reach out to a competent Rockland County bankruptcy attorney. Schedule your free initial consultation with The Law Offices of Allen A. Kolber, Esq. today.
