Minnesota Wage Garnishments
In the state of Minnesota, creditors are allowed to take up to 25% of someone’s disposable income in order to pay or maintain the payments of a debt. This is referred to as wage garnishment. Instead of receiving your entire pay check each week or month, you will only receive a fraction of the amount with the rest going to the creditors. This can have a devastating impact on your financial welfare and your future.
How Wage Garnishment Works
Wage garnishment occurs after a creditor has gone to court and wins a judgment against you. The creditor will send you a notice informing you that this will happen and a sheriff will normally issue the order to comply with the wage garnishment which you are required by law to obey. Although not all income can be garnished, such as unemployment assistance, social security checks and retirement benefits, your main source of income will most likely be affected. If you have been ordered to appear in court or if you have been issued with a wage garnishment, then it’s a good idea to contact a Minneapolis bankruptcy lawyer to discuss your legal rights and alternatives.
Bankruptcy is one solution to putting an end to wage garnishment and other bank account suspensions. As soon as you file for either Chapter 7 or Chapter 13 bankruptcy, the wage garnishment will stop. What this means is that you will actually have a chance to catch up while your bankruptcy is in process.
The Implications of Wage Garnishment
Creditors are able to take up to 25% of your monthly disposable income (after taxes and social security reductions) in order to pay back a debt. Many people are not fully aware of the implications of wage garnishment. Let’s do the math:
For someone who makes $2,000 per month (after taxes), wage garnishment law can allow creditors to take $500 of this income. This means you only have $1,500 to pay the mortgage or rent, the vehicle payments, the phone, the internet, the student loan fees and the electricity bill. In addition to these bills, you also have to worry about the credit card bills, the groceries, the fuel for your car, emergency spending money and additonal loan payments. In most instances, this 25% is the money that would go towards paying off any debts. However, with wage garnishment, each month you continue to fall more and more behind. Furthermore, if you are battling through job loss, a divorce, unexpected medical bills or any other emergency, then there will be even more unforeseen costs to deal with.
Minneapolis Bankruptcy Lawyers & Attorneys
In some instances, bankruptcy may not be the solution you are looking for. Our wage garnishment attorneys will assess your situation and determine whether bankruptcy is your best alternative. We can speak to the creditors on your behalf in order to come up with the best solution for your problem. With over 60 years experience between them, the team at Myles A. Schneider & Associates, Ltd. offers affordable rates, compassionate and confidential service and qualified legal support when you need it most.
We represent bankruptcy clients in matters involving Chapter 7 bankruptcy, Chapter 13 bankruptcy, wage garnishment, creditor harassment, foreclosures and debt consolidation. Contact Myles A. Schneider & Associates, Ltd. 24 hours a day, seven days to week at 763-315-1100 to see how we can help you.
