Typically in Atlanta, once a creditor obtains a judgment against a debtor, the next step is to collect on that Judgment. There are different methods of collecting on a judgment. Probably, the most effective method of collecting on a judgment is to resort to a wage garnishment action.
Wage garnishment is a legal action that obligates your employer to deduct a portion of your paycheck until the judgment in question is satisfied. Typically in Georgia, about 25% of employee’s gross wages (before taxes) are garnished. Wage garnishment is a very effective way of collecting on a judgment, but it also can have a very devastating effect on people’s lives.
The good news is that filing for bankruptcy (Chapter 7 or Chapter 13) will stop a wage garnishment action from going forward. Once a bankruptcy case is filed, a provision of the Federal Bankruptcy Laws known as the “automatic stay” goes into effect. The automatic stay provision of the bankruptcy code prevents your creditors from garnishing your wages.
Here are some questions that I am frequently asked about wage garnishment in Metro Atlanta and throughout Georgia:
- Can my Social Security Benefits be garnished? No, certain types of income are exempted from garnishment and social security benefits cannot be garnished.
- What happens if I am facing multiple garnishment actions? Can each creditor get 25% of my wages? No, If you are facing multiple garnishment actions, those creditors have to take turns and garnish one at a time. Once the first judgment is satisfied, then the second creditor in line starts the wage garnishment.
Should I file for bankruptcy?
If you are facing wage garnishment, we can help you. Contact us for a free consultation.