Wage Garnishments Plague Ohio Consumers But Bankruptcy Can Help

Bankruptcy Attorney Dayton, Oh

With the slow economy many Ohio consumers are struggling with debt, and one of the most common methods used by creditors is a wage garnishment. A wage garnishment affects many Americans and Ohio citizens. A creditor can legally take a portion of your paycheck to pay off your debts if the creditor gets a wage garnishment order from the court. The amount deducted will depend on the type of debt being collected, with most garnishments allowing a creditor to take up to 25% of your wages every pay period. If the wage garnishment is issued for child support or certain other high priority debts then your paycheck could see a maximum deduction that can be up to 65% of your wages.


When you have your wages garnished this can devastate your finances, and if you are just barely getting by or struggling to begin with a wage garnishment will only create bigger financial problems and cause you to fall behind on other bills and expenses. If you already have problems meeting your bills on time and paying for typical living expenses, including food for your family and gas to get back and forth to work, then taking away part of your income due to a wage garnishment may cause a downward spiral that does not seem to end. Foreclosure, repossession, and escalating credit card debt often follow wage garnishments in Ohio and other states. This cycle may seem impossible to escape.


Wage garnishments may seem to go on forever for some Ohio consumers. A wage garnishment is issued when your creditor goes to court to get a judgment against you for the debts you owe. The judge will usually order a writ of garnishment with a specific time period allowed. The time that the creditor can garnish your wages will usually range from 60 days up to 180 days or even longer. The creditor will continue to have the money deducted from your pay until the debt is paid in full or until the time allowed in the wage garnishment order expires, whichever comes first.


Wage Garnishments Can Seem To Last Forever If You Have A Lot Of Debt


When the wage garnishment time period expires this may not be the end of your pay deductions if you still owe on the debts listed. The creditor will usually go to court and get another wage garnishment order, especially since your creditor already knows all of your employer information. The new order will also be valid for the specified time. When you do finally get one creditor paid off there are often other creditors waiting to apply for a wage garnishment order.


Tax debts that result in wage garnishments often create even bigger problems for Ohio consumers, because the federal government has additional enforcement powers and is not limited by the rules for typical creditors. If you owe tax debts to the US Government then a wage garnishment can be issued without requiring the courts. The IRS can garnish your wages, levy your bank accounts, put a lien against your home, and even seize personal property that you own. Unlike a wage garnishment from a typical creditor the writ of garnishment from the US Government does not have any expiration date.


There Is Hope For Ohio Consumers Facing Wage Garnishment


While it may seem like a wage garnishment against your paycheck never ends there is hope. Wage garnishments must stop immediately if you file for bankruptcy, because this step places an automatic stay on all debt collection activities. Creditors who have a writ of garnishment can not enforce this order until the bankruptcy judge has given permission for the debt collection to continue, and typical bankruptcy cases see most if not all of the debts involved eliminated. If the debt is discharged during bankruptcy then the creditor is not allowed to try and collect on the debt and any effort to do so is against the law.


Not all debt types can be discharged during bankruptcy. Debts that may not always be discharged can include back taxes owed, child support debt, alimony, and other priority debts. Most debts can be discharged through bankruptcy though, and this step may help you get back on the right financial track.


In many cases bankruptcy can help you get the fresh financial start and debt free future that you want and need. After filing for bankruptcy protection you can answer your phone and check your mail without fear because the harassing calls and letters will stop. You can finally breath again without massive debt crushing you and this will give you the power to start a new life and a new financial slate.


The bankruptcy attorneys at Richard West Law can help provide a free debt consolidation consultation to help you find the right answer for your unique debt problems and circumstances. Visit https://www.debtfreeohio.com or call (513)771-8700 or (937)748-1749 to get the answers you want, and the financial relief you are looking for.

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