BANKRUPTCY ISSUES - GARNISHMENTS
EXPERIENCED ORLANDO AND CENTRAL FLORIDA BANKRUPTCY AND WAGE GARNISHMENT RELATED BANKRUPTCY LEGAL REPRESENTATION
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There are different issues relating to wage garnishments and bankruptcy depending on the specific circumstances involving the wage garnishment.
Wage Garnishments that were obtained as an agreement directly with you as a result of the threat of civil litigation:
- Sometimes creditors, debt collection agencies or even a law firm are so convincing while making threats of litigation and wage garnishments, the debt holder is compelled to agree to a form of wage garnishment rather than be sued. First of all, if you agreed to a wage garnishment plan or what these companies may call a repayment plan, this agreement may not be legal or stand up in court. Especially if the agreement to wage garnishment or repayment plan was the result of threats by the creditor, debt collection agency, or law firm. Even though you are "paying off the debt", if you chose to file for bankruptcy, this wage garnishment may be stopped if the remaining debt is allowed by the court to be covered in a bankruptcy claim.
- Credit and debt collectors threatening wage garnishments without filing civil litigation against you: If a creditor, debt collection agency, or law firm threatens you with potential wage garnishments, and no civil litigation has been filed against you, this is a violation of the Fair Debt Collection Practices Act (FDCPA). According to the FDCPA threatening wage garnishments or any other threats regarding the debt are prohibited. If anyone has threatened you with wage garnishments or made other to you regarding a debt, document each occurrence and immediately report this to your attorney. The creditor, debt collection agency, or law firm may be fined and you may also be able to seek civil damages against the offending party for each individual act that violated the Fair Debt Collection Practices Act (FDCPA).
- Credit and debt wage garnishments as a result of a court order following civil litigation: If a creditor has obtained a successful lawsuit against you that resulted in court ordered wage garnishments as a part of the judgment, this debt cannot be included or discharged in a bankruptcy. Final Judgments are legally binding, and therefore enforceable under the law.
When you file bankruptcy:
An automatic stay goes into effect that prohibits and stops most collection activities by creditors. This means that wage garnishments are also stopped as long as the bankruptcy stay is in effect. If a creditor wants to resume collection efforts, it must ask the court to lift the stay. The court will lift the stay only if the creditor has a valid reason for doing so. An unsecured creditor such as a credit card company simply wishing to resume a wage garnishment is not a valid reason for the court to lift the stay.
Debts which cannot be included for consideration to be discharged or sought to stop wage garnishments in a bankruptcy include:
- Alimony spousal support;
- Child support;
- Fraudulent debts;
- Certain taxes;
- Student loans;
- And certain items which have been charged.
We are extremely detailed in our preparation regarding your bankruptcy, provide a comprehensive approach in seeking a successful bankruptcy, and guide you through this difficult process with the dignity and respect you deserve.
There may be many other Bankruptcy issues that may have to be addressed, depending upon your unique circumstances and how the bankruptcy laws apply to your current situation.
Contact an experienced Bankruptcy Attorney (lawyer) at the Budgen Law today to schedule a free and confidential legal consultation.
Call Us Now 407.481.2888
Orlando Bankruptcy Lawyer, providing experienced Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Attorney legal Services in Orlando, Longwood, Maitland, Orange County, Seminole County and the surrounding Central Florida areas.