Wage Garnishment or IRS Wage Levy
The most effective and devastating tool that a creditor has to collect a debt from you is to garnish your wages. If you owe the IRS it is called a “levy.”
The information below also applies if your bank account has been levied.
IMPORTANT: A CREDITOR CANNOT GARNISH YOUR INCOME; ONLY A COURT OR THE IRS MAY DIRECTLY GARNISH WAGES. A creditor has to have gone to a court and previously been awarded a judgment against you in order to get the court to issue a wage garnishment. You should have been served a court process before that happens.
IF YOU HAVE ALREADY BEEN SUED AND YOU EARN WAGES, YOU ARE IN DANGER OF A WAGE GARNISHMENT! Call us immediately!
Not all income is subject to garnishment.
Protected income: Social Security benefits, retirement benefits, annuities, military or veterans benefits, workers compensation or some other similar benefit, your income cannot be garnished before you receive it or after it is in your bank account.
Exposed income: Wages, commissions, and 1099 contractor payments. If you earn your income by these methods then your income can be garnished. In Tennessee and Virginia, the Court takes 25 percent of your take home pay.
Garnishments are devastating; they blow your budget out of the water. They are very difficult to recover from. They must be stopped quickly!
OUR LAW FIRM CAN STOP A WAGE GARNISHMENT. Filing a bankruptcy case stops a garnishment. But if you have not filed a bankruptcy case yet we know the law and the techniques to stop a wage garnishment, even before you file a bankruptcy case. Garnishments are not easy to stop. It requires a dedicated bankruptcy lawyer, the cooperation of the creditor’s and its attorney, the court clerk that issued the wage garnishment, and your employer.
GOOD NEWS! OFTEN WE CAN RECOVER YOUR MONEY! There is some good news in the garnishment world though. One of the things you may be able to do in a bankruptcy case is recover the money that has been garnished from you. The basic formula is that if, in the previous 90 days a creditor has received over $600 of your garnished wages we are able to demand refund of all garnished wages in the 90 days prior to filing your case. We cannot recover garnished wages paid to the creditor more that 90 days before you file a bankruptcy case. .
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