Wage garnishment is a situation that can be not only just challenging but devastating as well. It can cause many mental problems, but generally, it is very downgrading for our confidence. In such a hard moment, it is very important to clarify how much you can lose due to wage garnishment and how to stop a garnishment in Michigan.
What is wage garnishment?
Most people in the 21st century live in debt. The harder the times get, the harder the payment gets as well. If you come up to be late with some of your payments to your debt, chances are wage garnishment will be imposed.
When this happens it is only a need of the creditors and institutions to insist on you giving their money back. If it turns out impossible for them to impose this on you in a good way, they impose regulations on your employer. As a result your employer restricts you from a part of your monthly paycheck automatically and the money goes straight to the creditor institution. If the process goes like that, the wage garnishment will be over once your debt is paid.
How to fight wage garnishment?
What if you do not have money to execute the payments on your debt and this is the reason, and at the same time they restrict you from money you earned. This is the time when you announce bankruptcy and this is the only way to stop wage garnishment legally.
How to declare bankruptcy?
You have to gather a lot of data such as a report for your tax returns for the last two months including the month of filing bankruptcy. It is important to insist on a report of your income and expenses from your banking institution for the last at least six months to one year. It would be great if you have a report from your creditors for any additional billing or credits such as medical bills and student loans.
You have to file the Chapter 13 and Chapter 7 bankruptcy forms. You have to print all these documents hard copy including a second copy, so you can make sure everything is in place when you file. You shall sign all the blank spaces spare for signing and pay the filing fee of about 350$. Then, you just submit all the paperwork to the court and wait.
Once you receive the form 309A, there you can find the name and contacts of your trustee as well as the date and time of your meeting 341. This meeting may sound like something very serious and intimidating. However, it is set only for the trustee to verify your identity and all the little details, so it goes for just a couple of minutes.
After even this meeting goes, you are only waiting for the decision of the court as you have declared bankruptcy. The court is supposed to restrict any creditor institutions from taking your money from your monthly paychecks. When the decision is ready and the wage garnishment process is over for you.