Law Office of Paul Petrillo
Contact Us Today 603-635-4149
Menu Contact

Dealing with unsecured creditors in New Hampshire

When a borrower is unable to make a credit card payment, it is possible that the issuer could seek a wage garnishment or seek a lien on certain property. However, creditors cannot do so on their own. Instead, a creditor must first obtain a judgment and then seek a court order asking permission to garnish wages or place a lien on property. If a garnishment is granted, the law states that a maximum of 25 percent of wages can be garnished each pay period.

A debtor may protest the ruling if he or she believes that it is not possible to live on only 75 percent of each paycheck. However, the are some exceptions to this rule. For instance, the IRS can garnish wages and place liens on property without a court order. Those who have not made student loan payments could see up to 15 percent of their wages garnished by the Department of Education.

In addition, another 10 percent could be garnished by a state education agency. Those who are behind on child support payments may have up to 50 percent of their wages garnished to comply with a court order. Typically, a tax refund will not be taken unless there is a specific request from the IRS, DOE or a child support agency requesting that money.

Those who are burdened with insurmountable financial obligations may wish to pursue bankruptcy. In a Chapter 7 bankruptcy case, some unsecured debt may be discharged in a matter of weeks or months. However, certain types of debts are not dischargeable, and a bankruptcy attorney can discuss this information as well as the eligibility requirements with a client.

Source: Findlaw, "I am unable to pay off debt to a creditor. Can he or she place liens on my property, garnish my wages, seize my assets, or take my tax refund? ", December 17, 2014

No Comments

Leave a comment
Comment Information

Start Your Case Today

Whether you have a family law issue, an estate planning question or are considering bankruptcy, I can help you find a sustainable solution that provides relief and hope. Schedule your consultation at my Nashua, New Hampshire office today by calling 603-635-4149 or by sending us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

email us for a response
Law Office of Paul Petrillo