Wage garnishment is an unfortunate situation for quite a few people. This process happens when a court order is submitted to your employer instructing them to remove money from your paychecks. This is done in various situations, including spousal support, child support and repaying of debts to creditors. You can stop wage garnishment immediately by filing for Chapter 7 bankruptcy in New Hampshire.
Before you can file for bankruptcy, you are required to complete credit counseling. If you do not complete this program or don’t have proof of it, you will not be able to file for bankruptcy. Do this first and then complete your bankruptcy filing. Once you complete the petition, file it and obtain a case number.
Now you can obtain the earnings withholding order (EWO) from your employer. The human resources or payroll department at your company should have this information. The name of the creditor that requested your wages be garnished will be on the EWO. Use this information to contact the creditor and inform them that you filed for bankruptcy. Proof of the bankruptcy filing must be sent to the creditor so they know the filing is legitimate.
After you notify the creditor that you have filed for bankruptcy, notify the payroll department where you work. They will need to be on the lookout for any further notices about wage garnishment, which should stop immediately.
Any money that has been taken from your paychecks following the bankruptcy filing is protected money. This means that it will not be distributed to your creditors and instead returned to you.
Some people file to reclaim money garnished from their checks. It is possible that some money might be recovered, but for the most part, money taken prior to a bankruptcy filing cannot be recovered by the debtor.
Our experienced attorneys can answer all of your Chapter 7 bankruptcy questions, including how you can stop wage garnishment in Nashua, New Hampshire.