Wage garnishments happen when a court orders an employer to withhold a certain amount of money from an employee’s paycheck and send it to someone to whom the employee owes money.
There are different types of wage garnishments, but the most common type is creditor garnishment. A creditor garnishment happens when someone owes money on a debt, like credit cards, medical bills, or student loans. The court can order the person’s employer to withhold money from their paycheck and send it to the creditors.
In some cases, wage garnishments can be stopped if the person files for bankruptcy, but there are some types of debts that cannot be discharged in bankruptcy. Child support or alimony payments cannot be discharged in bankruptcy. Wage garnishments for those types of debts will continue even if the person files for bankruptcy.
Can My Unemployment Benefits Be Garnished?
The answer depends on the reason for the garnishment. Generally, unemployment benefits can be garnished for child support, alimony, or back taxes owed to the state which issued you unemployment. If your benefits are being garnished for one of these reasons, you’ll typically receive a notice in the mail informing you of the garnishment and how much will be taken out of your benefits.
If your benefits are being garnished for any other reason, such as unpaid student loans or credit card debt, it’s unlikely that your benefits will be garnished. In most cases, you can file for an exemption from garnishment if you can demonstrate that paying the debt would cause undue hardship.
Can I Put a Stop to Wage Garnishments?
While wage garnishment can be a difficult situation to be in, there are options available to help you stop the wage garnishments and get back on track. The best way to stop wage garnishments is to contact your creditors and work out a payment plan that works for both parties. You may also be able to negotiate a lump sum payment to pay off the debt in full.
If you are unable to come to an agreement with your creditor, you can file for bankruptcy which will put an automatic stop to all wage garnishments. If you are currently facing wage garnishments or are at risk of wage garnishments, contact our law offices today to discuss your options and find a solution that works for you.
When Should I Contact a Lawyer?
If you are having trouble making ends meet as a result of wage garnishments, a lawyer can be there for you. A lawyer can help you negotiate with your creditors and come up with a payment plan that works for both parties. If you are unable to reach an agreement with your creditor, a lawyer can also help you file for bankruptcy which will put a stop to all wage garnishments.
If you are facing wage garnishments or are at risk of wage garnishments, contact our law office today at (317) 623-4546 to schedule a consultation. We can help you explore your options and find a solution that works for you.