Mobile, AL Bankruptcy Law Firm Helps Bankruptcy Clients Facing Wage Garnishment

Alabama Bankruptcy Lawyers Protect the Rights of Clients in Bankruptcy

Alabama wage garnishment laws are comparable to federal wage garnishment laws. Generally, creditors with judgments are allowed to take 25 percent of an individual’s wages or any amount over 30 times minimum wage, whichever is less. For some types of debt, creditors can take more. However, non-consumer debts cannot be garnished at more than 25 percent, regardless of the amount above the minimum wage.

What is Wage Garnishment?

Wage garnishment is a court order that is sent to an employer, requiring that they withhold a certain portion of an employee’s paycheck and send it directly to a creditor. Most creditors will not be able to obtain a wage garnishment order until they have a court judgment that says you owe them the money, except if the debt is for:

• Delinquent income taxes
• Court-ordered child support payments, including arrears
• Some student loans in default

Can Wage Garnishment be Stopped?

There are a couple of ways that wage garnishment may be stopped in Alabama. If your take-home pay is less than $1,000 per paycheck, you may be able to stop garnishment by filing a claim of exemptions. Wage garnishment can also be stopped by filing for Chapter 7 straight bankruptcy or Chapter 13 debt consolidation.

Upon filing the bankruptcy petition, an automatic stay will be put in place, immediately stopping all garnishments from occurring until the bankruptcy proceeding is completed. After the bankruptcy is concluded, all debts will be discharged except non-dischargeable debts like alimony, child support, student loans, and unpaid delinquent income taxes.

Contact an Experienced Mobile, Alabama Bankruptcy Attorney

Are you facing wage garnishment and considering filing for bankruptcy to avoid it? Contact the experienced bankruptcy lawyers at the Bond and Botes Law Offices online or call 1-877-581-3396 to discuss your financial situation today.