If you are sued it is important to see an attorney immediately before your wages or bank accounts are garnished or your real property property is attached by a judgment lien. Standard creditor attorney practice includes sending out wage garnishments, bank account garnishments and attaching any real estate in your name after they sue and obtain a judgment. It can take weeks to recover wages or bank account funds if garnishments can be recovered at all by filing bankruptcy. The removal of a judgment lien normally requires the filing of a motion to have that lien removed and obtaining an appraisal.
Only certain debts such as student loans and IRS Income taxes can garnish wages or bank accounts without first suing the Debtor and obtaining a judgment. If a creditor files a non-wage garnishment upon a bank whatever money is on deposit in your account, up to the amount of the judgment will be attached and sent to that creditor. The garnishment will often cause you to overdraft the account. Non-wage garnishments are not supposed to levy against social security funds in the account but you will often have to go to court to have funds refunded.
Wage garnsihments are supposed to be limited to 25% and employers are supposed to not dismiss an employee for the first wage garnishment. However employers have taken more than 25% and found other reasons for dismissing an employee. Wage garnishments often make an employer nervous about the possibility of employee theft.
Once a real estate lien or garnishment attaches it becomes hard or impossible to get property back. While bankruptcy will stop a creditor from garnishing wages once the lien attaches to property is acts just like a mortgage or car lien. It is far better to see an attorney as soon as you are sued.
Attorney Nick C. Thompson Louisville Kentucky How to file for Chapter 7 Bankruptcy
Comments on this entry are closed.