Wage Garnishment Bankruptcy: How to Stop Wage Garnishment
Creditors have a wide array of options at their disposal when trying to collect on judgments. One of creditors’ favorite tactics is to place a garnishment on your wages. This can generally happen thirty days after a judgment is entered. According to wage garnishment laws in Maryland, creditors can, and often do, take up to 25% of your net wages per pay check if a judgment has been entered against you. The IRS can take even more than 25%.
It’s important to be prepared and informed about potential courses in action so that you can fight to stop wage garnishment and protect yourself and your assets.
Another tool in the creditor toolbox is to place a garnishment on property other than wages, which often means to place a “freeze” on your bank accounts. This causes a major problem for judgment debtors as they cannot access their funds at any point after the account is frozen. Moreover, this causes additional problems for the growing number of individuals who receive their paycheck by direct deposit. In many instances, a judgment debtor’s paycheck will be directly deposited into a frozen account and the funds from that paycheck will be inaccessible while that account is frozen.
After the garnishment is placed on your bank account, your bank must confirm the money in your account. Once this happens, the creditor will seek to have the frozen funds turned over to use as payment towards the judgment amount. Still, if your judgment debt is not satisfied in full, the creditor will continue to engage in collection efforts until the balance is paid in full or the judgment debtor takes action. Often times, post judgment interest will continue to accrue on the judgment, allowing the garnishment continue for months, or even years, depending on the amount.
There are ways to protect yourself and your assets, and stop the garnishment of wages in Maryland, and prevent your bank account from being frozen due to a judgment. I encourage anyone burdened by or facing a possible wage garnishment or bank account levy to consult with a wage garnishment lawyer immediately.
Call The Law Offices of Brandon Bernstein, LLC at 240.395.1418 and schedule a free consultation to learn more about how to stop a garnishment in Maryland.
The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Read our full disclosure here.