Houston Bankruptcy Garnishment

Our firm can help you stop wage garnishment

Garnishment is a legal proceeding that orders a third party, such as an employer, to transfer wages or other money or property to a debtor in payment of a debt.  One way to stop wage garnishment is by filing for bankruptcy protection.  Talk with an experienced attorney about Houston bankruptcy garnishment if you are facing the garnishment of wages by a creditor.

What is wage garnishment?

Garnishment begins when a creditor secures a court judgment to collect what is owed.  The debtor may be ordered by the court to provide financial information.

If the court rules that the debtor should pay and the debtor cannot do so, the court can allow the creditor to take money from the debtor's property or wages.  The creditor must send the debtor a garnishment notice that includes:

• A clear authorization statement from the court
• A description of any exemptions that the creditor cannot take
• Steps the debtor can follow to challenge the garnishment

How is wage garnishment enforced?

Once garnishment is approved and notice is given to the debtor, a local sheriff presents the employer with garnishment papers that order the withholding of a specified item or amount.  Items of value subject to garnishment can include:

• Vehicles
• Regular wages
• Bank accounts

Limitations on garnishments

Federal law limits payroll garnishment to a percentage of disposable earnings—regular pay minus required tax and Social Security deductions.  Certain income cannot be garnished, including:

• Social Security benefits
• Retirement plan benefits
• Public assistance benefits

These forms of income are protected as long as they are deposited into bank account and remain available for daily expenditure.  However, if they are deposited into a less liquid investment, they may be garnished.

Unless a garnishment judgment is for child or spousal support, the debtor’s income from certain other sources cannot be garnished, including:

• Workers' compensation awards
• Unemployment or disability benefits

Federal law prohibits an employer from terminating an employee due to a garnishment order for one debt.  However, an employee can be fired for having more than one wage garnishment.

How to stop Houston wage garnishment

Garnishment can be halted if the debtor files for bankruptcy protection with an automatic stay.  It can also be stopped by settling the debt dispute through other means.  The Law Offices of Jack N. Fuerst, P.C. have extensive experience in halting garnishment.  Contact us at 1-866-641-0123 or through our convenient online form to talk about your situation.