Creditors such as former landlords, payday loan companies and credit card issuers sometimes sue their former customers for unpaid debts. If they win the lawsuit, they may seek a wage garnishment to get the money you owe taken directly from your paycheck. While you may not dispute that you owe the money, it’s likely you can’t afford to lose part of your salary to pay an old debt. Fortunately, you have an option other than quitting your job and living off the grid.
After you have been sued and the creditor has won the right to garnish your wages, there isn’t a lot you can do to negotiate with the creditor. Your best option is to consult with an attorney about how Bankruptcy in St. Charles MO. Individuals have two basic bankruptcy choices, Chapter 7 and Chapter 13. Those who qualify for Chapter 7 may be able to have the garnishment stopped and not have to repay anything on the debt. You may, however, have to forfeit your some of your assets if they exceed the exemption amounts. Your attorney can explain how exemptions work and let you know if you will have to give up your property to pay your debts.
Individuals who either don’t qualify for Chapter 7 or who have property they don’t want to lose can still file for Chapter 13 Bankruptcy in St. Charles MO. If you use this, you will have to pay back some of your debts but your payments will be affordable and anything you still owe after the repayment period may be discharged. Repayment periods are typically either three or five years.
Bankruptcy in St. Charles MO can give you the relief you need from excessive debts and garnishments. An attorney such as Van Dillen and Flood can help you understand the process and help you determine if bankruptcy is the best way for you to handle your debt problem. There may be other options available to you and your attorney may discuss those options with you during your consultation. It is important to talk to a lawyer as soon as you realize you are in trouble so you have the best chance to avoid serious consequences like wage garnishment and foreclosure. Click here for more details.
