If your wages are garnished by a taxing authority or other creditor, the effect on your life can be devastating.
In New York, up to 25 percent of your pay can be taken from you each period in a garnishment (also known as an income execution). This very seriously impacts your ability to provide for the basic needs of yourself and your family.
If you are having problems with debt and now your wages are being garnished, call us immediately. Bankruptcy stops income executions by way of a court order called an automatic stay, which goes into effect upon the filing of a bankruptcy proceeding. In a Chapter 7 bankruptcy, most types of debt will also be eliminated.
Alimony and child support are not dischargeable in bankruptcy. If your wages are being garnished for an alimony or child support obligation, they will continue to be if you file Chapter 7. In Chapter 13 bankruptcy, however, all of your debts are restructured rather than eliminated. You will still have to pay them, but the domestic support obligations will become part of the restructuring plan, and income execution will stop.
Call us for more details.