How to Handle Wage Garnishment Before Bankruptcy in Pennsylvania

Wage garnishment can be a distressing experience, especially when you're already dealing with financial difficulties. If you find yourself facing wage garnishment and considering bankruptcy in Pennsylvania, it's essential to understand your rights and the steps you can take to manage the situation effectively.

Understanding Wage Garnishment in Pennsylvania

Wage garnishment occurs when a creditor obtains a court order to deduct a portion of your wages directly from your paycheck to settle debts. In Pennsylvania, creditors can garnish your wages for various debts, including child support, unpaid taxes, and certain judgments. However, there are limits to how much can be garnished, which is typically 20% of your disposable income.

Steps to Handle Wage Garnishment

1. Verify the Legitimacy of the Garnishment: Before taking any steps, ensure that the garnishment is legitimate. Check the court documents and confirm that the creditor has followed the proper legal procedure. If you believe the garnishment is incorrect or unlawful, you can file an objection with the court.

2. Communicate with Your Creditor: Sometimes, creditors might be willing to negotiate a payment plan that is more manageable for you. Reach out to your creditor to discuss your financial situation and see if they will agree to a reduced payment or temporarily pause the garnishment.

3. Seek Legal Advice: Consulting with an experienced bankruptcy attorney in Pennsylvania can provide you with invaluable guidance. They can help you understand your rights, assess your financial situation, and determine whether filing for bankruptcy is the best option for you.

4. Consider Bankruptcy: If your financial situation is dire, bankruptcy might be a feasible solution to stop wage garnishment. Chapter 7 or Chapter 13 bankruptcy can provide an automatic stay, halting all collection actions, including garnishment.

Chapter 7 Bankruptcy: This type of bankruptcy allows for the discharge of many unsecured debts and can offer immediate relief from garnishment. However, eligibility is based on income thresholds and asset valuations.

Chapter 13 Bankruptcy: If you have a regular income and want to keep your assets, Chapter 13 may be suitable. It enables you to repay your debts over three to five years while stopping garnishment and other collection actions.

5. Document Everything: Keep records of all communications with creditors, court documents, and any payments made toward your debts. This documentation can be helpful if discrepancies arise or additional legal action is needed.