What To Do If You Are Being Garnished In Arizona.
It is an awful feeling when you look at your pay stub and realize that your take home pay is drastically less then usual due to a garnishment. You rush to your phone or computer to verify the amount deposited in your bank account in hope that it is an error. Instead the horror of your situation is confirmed. You may not be able to pay all your bills this month.
It could be worse. The garnishment could have gone to the bank and all the funds deposited from your pay check could be frozen.
There is a hope. We can undo the garnish quickly with the filing of a bankruptcy which will also get you out of all the debt you have been unsuccessfully struggling to pay.
The truth is that once you have fallen behind on your bills and your credit score has dropped drastically, a bankruptcy is generally the fastest, cheapest, and easiest way to rebuild your credit and get back on financial track. However, many people wait even when they realize they cannot pay their debt and even when they received a lawsuit and ultimately a judgment. Once you have a judgment against you there is no reason in my professional opinion to wait for a miracle.
To be able to garnish a persons wages or bank account in Arizona the creditor must have filed a lawsuit and been granted a judgment which is the legal term for the court acknowledging that the debt is owed. A judgment can be awarded even if you ar unable to attend the hearing set for the lawsuit. Next the creditor can take that judgment and file a garnishment against your wages and bank accounts with the court. This triggers a legal order to garnish you being sent to either your employer or bank which forces them to turn over the required funds or be subject to penalties.
In Arizona, you are offered a time to be heard when a garnishment is filed against you. It does not guarantee that the garnishment will be stopped or reduced. Only a bankruptcy can guarantee that the garnishment is halted. When you receive the garnishment paperwork, you have a small amount of time to request a hearing to object before the garnishment moves forward. Once a garnishment starts, it is extremely important to get it stopped right away. The creditor is entitled to 15% to 25% of your weekly wages, depending on your income. The longer you wait to take action the more money you stand to lose and the harder it will affect your monthly budget. Garnishments make it hard to keep up with rent, groceries, utilities, etc., when a quarter of your pay is being withheld.
Once again, the fastest and most powerful way to stop a garnishment is by filing a bankruptcy. Once the bankruptcy is filed, the creditor is compelled to stop immediately from collecting any money from you. What happens to the rest of the debt will depend on the type of bankruptcy you file. In many cases, the bankruptcy can completely wipe away all of your unsecured debt. Filing a bankruptcy will give you the peace of mind that another creditor isn’t waiting in the wings to garnish your pay next.
Being garnished can be an extremely stressful thing to be facing. It is important that you seek the advice of an experienced bankruptcy attorney that will be able to explain your options and help you choose the best option for you.
Give Merna Law a call today to discuss your options. We have free consultations, affordable rates, and easy payment plans. With offices in Phoenix, Peoria, and Scottsdale, we are conveniently located to help you no matter what part of the Phoenix metro area you live in. Call today and relax tomorrow. 800-662-8813.