Financial hardships are known to bring about high levels of stress that can devastate Arkansas families. Once debts become overwhelming, harassment from creditors and the threat of imminent legal action typically escalates the tension. Considering the potential solutions may prove difficult and confusing; however, being fully informed about one’s legal rights and the pros and cons of various options, such as Chapter 7 bankruptcy, may allow one to make informed decisions.
Although most consumers would like to avoid wage garnishments at all costs, they do happen. A wage garnishment could result from a federal order for delinquent taxes, a student loan that is federally backed or ordered by a court. Regardless of who ordered the garnishment, an employer is bound by law to execute it. Once wages are garnished, an employee may get in touch with the creditor to negotiate a payment plan that is affordable.
Depending on state law and debt type, the percentage of an employee’s wages that may be garnished is limited. Nevertheless, if an employee can prove that the allowed limit will cause substantial financial hardships, such as eviction or foreclosure, reduction or elimination of the garnishment order may be negotiated. Appropriate claim forms will have to be obtained for a hearing in the court from which the garnishment originated.
Some Arkansas consumers, whose financial situations have deteriorated to a point at which wage garnishments are inevitable, choose to consult with experienced bankruptcy attorneys. A lawyer can not only inform a client of his or her legal rights but also of potential solutions. One possible solution is filing for Chapter 7 bankruptcy, which will instantly stop wage garnishment. The advantages and disadvantages can be explained to allow a client to make choices that will benefit his or her financial future.
Source: garnishmentlaws.org, “How to stop wage garnishment?“, Accessed on May 12, 2015