Bankruptcy Can Stop Wage Garnishment for Debt Burdened Chicago Residents
What if one day money started disappearing from your bank account?
It's no scam - it's a legal action called wage garnishment, and it's happening to thousands of Chicago debtors. Fed up banks are suing customers who aren't paying their debt balance, according to the New York Times. And since many of us are too tapped out to defend ourselves (or in some cases, aren't even aware we're being sued) the banks can often get a court order to take the money straight from our paychecks.
It doesn't seem fair. We can't afford to pay our debts, so debt collectors take more money away from us - leaving us with overdrawn account fees and more need than ever to rely on our credit cards. But there's a little known way to keep your bank's hands out of your paycheck - bankruptcy.
Wage garnishment isn't just for credit card debt. Money can be taken from you for medical bills, child support or unpaid taxes - in many cases, up to one-quarter of your paycheck for each debt - leaving you with little leftover to live on.
But bankruptcy can come to the rescue, thanks to the automatic stay. You may have heard the automatic stay can stop foreclosure when you file for bankruptcy. But it can also stop other creditor actions - in this case, wage garnishment. And it goes to work from the moment your paperwork is filed.
Bankruptcy kills two birds with one stone. Not only can it protect your wages, but it can also help you eliminate that pesky debt once and for all - so you won't have to worry about interest payments or future creditor actions. At DebtStoppers, our Chicago bankruptcy attorneys can identify a bankruptcy plan that fits your individual financial situation. Give our free personal debt analysis a try and let us help you get your paycheck back where it belongs - in your pocket.