Wisconsin readers know one of the most difficult aspects of owing a lot of debt is the effect it can have on other aspects of your life. For example, you could experience issues, such as constant phone calls from creditors and even garnishment of your wages.

If creditors are moving to garnish a portion of your wages, you may find it beneficial to learn about your rights and how you can shield your interests during the process of wage garnishment. Wage garnishment is a serious issue with a serious impact on your financial well-being, but you have the right to take specific legal measures to make it stop and effectively confront your debt.

What should you know about this process?

Wage garnishment can happen when a creditor seeks repayment of your debt by seeking permission to withhold a portion of your earned wages. This means that you could have less money to meet your daily needs, support your family and make payments on your debt. Wage garnishment can happen if you owe debts related to child support, back taxes, personal loans, student loans and judgments from court cases.

Learning that you will not receive a portion of the wages you earned because of debt can be disheartening, and overwhelming, and it may seem unfair. You may find it beneficial to consider the following facts about the process of wage garnishment:

  • A creditor cannot simply decide to contact your employer and have a portion of your wages withheld. They must first schedule a court hearing to request permission.
  • There is a limit to how much of your wages can be withheld. The amount cannot exceed more than 25 percent of your disposable weekly income. However, it can be higher if it is for the repayment of child support.
  • Your employer will know that wage garnishment is happening, but he or she cannot fire you if it is for only one debt. However, your employer can fire you if it is for two or more debts.

While this is a disruptive and frustrating thing to experience, there are ways you can make this process stop.

Using bankruptcy as a tool for your future

Bankruptcy may not be your first choice, but by filing, you can reclaim your financial future and make the process of wage garnishment stop. Upon filing for consumer bankruptcy protection, the automatic stay will go into effect, which will halt all contact from creditors, including garnishment, repossession efforts and even harassing phone calls. Bankruptcy could be a smart step for dealing with much of your debt once and for all.