Garnishments

Imagine this scenario, you have worked a lot of overtime in the past two weeks. You are looking forward to a big, fat paycheck. You get the envelope and tear it open only to find that it is smaller than your normal check. You look on the deductions part only to find that you have been hit with a garnishment. After a creditor has gotten a judgment against you (see Lawsuits section), that creditor can now take money out of your paycheck or bank account. This procedure is called garnishment. Under Utah law, a creditor can take up to 25% of your take-home pay or all of the money in your checking and/or savings account. It is a horrible thing to get your paycheck and receive less money than you earned because a creditor has taken some of your money, without your permission. Or you might get a notice from your bank that your checks are bouncing because the money in your account has been taken by a creditor with a judgement. These are real things that happen everyday.

However, if you file a chapter 13 or a chapter 7, you can either stop the creditor from continuing to take money from you or prevent them from even starting. The filing of a chapter 13 or 7 puts a "wall" between you and your creditors called the automatic stay. The automatic stay prevents the commencement or continuation of any type of collection, especially garnishment of your pay check. You don’t need to worry about a creditor taking away your hard-earned money once you file.

To explore your options, call us today for your free consultation. Let us show you how a chapter 13 or chapter 7 can give you the relief you need and help you deal with the financial situation you are in.