Get Foreclosure Help

Tag: wage garnishment

  • Why Do You Need Legal Guidance for Filing Chapter 7 Bankruptcy in Los Angeles?

    Why Do You Need Legal Guidance for Filing Chapter 7 Bankruptcy in Los Angeles?

    Sometimes, debt reorganization, repayment plans, etc. are not enough to get rid of the overwhelming debt accumulated by people. For such individuals, Chapter 7 bankruptcy is the only solution available. This type of bankruptcy is also known as liquidation bankruptcy, wherein the non-exempt property of the individual is sold off and the money so generated is distributed among creditors. After this, lawyers of Los Angeles based law firm Recovery Law Group clarify that any remaining debts are discharged.

    Considering the complexity of cases, it is vital that you consult adept bankruptcy lawyers to help you out in Chapter 7 bankruptcy filing. Many times, clients do not have any non-exempt assets, i.e. they get to keep all their property/assets. The primary task of a bankruptcy attorney is to evaluate the debt, assets, as well as income of the debtor to find out whether Chapter 7 is indeed the best debt relief solution for them or they, should opt for Chapter 11 bankruptcy. Not every debtor can file for Chapter 7 bankruptcy as they are required to qualify a means test. In this test, the income of the debtor is assessed. In case it is below the state median, they can file for Chapter 7 bankruptcy. If it is above the mean income in the state, they need to undergo credit counseling with an approved agency.

    What Happens If You Qualify for Chapter 7 Bankruptcy?

    If you are able to qualify the means test for Chapter 7, bankruptcy lawyers guide you through the entire process. In this particular bankruptcy, a court-appointed trustee gathers all non-exempt assets of the debtor and sells it. In the state of California, 2 sets of exemptions are available; California Code of Civil Procedure Sections 703 & 704. At a time, the debtor can choose from either of the two sets in his/ her bankruptcy case. Taking the help of your attorney can provide you the necessary guidance.

    Different assets that are exempted, either entirely or in part are listed below:

    • Tools of trade
    • Insurance policies
    • Clothes and personal effects
    • Jewelry
    • Vehicle equity
    • Homestead equity
    • Ordinary household goods (appliances, furniture, )
    • Retirement plans
    • Worker compensation or any income generated from a personal injury claim
    • Other assets

    Any assets apart from those listed above can be sold by the trustee and payments made to creditors as per the Bankruptcy Code. Any debt that remains after the liquidation of asset is discharged. However, it is important to remember that certain debts cannot be discharged. These include:

    • Some Government taxes
    • Spousal and child support
    • Few Education loans
    • Some criminal restitution debts
    • Certain personal injury debts

    Chapter 7 bankruptcy is an intricate process, however, with a skilled bankruptcy attorney by your side can make things relatively easy. The bankruptcy lawyers are adept at handling cases and can help you keep maximum assets, with bare minimum going for liquidation. Many times, debtors can keep all their assets while receiving a discharge simultaneously. It is important to have an honest conversation with your lawyer regarding your financial situation so that they can help devise legal ways for you to get a fresh start. Chapter 7 bankruptcy can be an excellent way to get rid of your debt problems and stop foreclosure, repossession, wage garnishment, bank levies as well as threatening phone calls from creditors.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • How to Stop Wage Garnishment And Collection Actions of Creditors in California

      How to Stop Wage Garnishment And Collection Actions of Creditors in California

      Time and again, bankruptcy lawyers such as those of Los Angeles based law firm Recovery Law Group reiterate that with a few exceptions (taxes, alimony, child support, student loan etc.) garnishment does not take place in states of California, Nevada and Texas unless a creditor has filed a case against you in a law of court and obtained judgment against you. In case they get a judgment against you, they need to file a request for garnishment which is issued to your employer. With this notice, your employer will need to provide your wages to the creditors at a specified time. However, the process requires you to be aware (via a notice) of the garnishment. Post receiving the notice, you need to ensure that you take appropriate actions against it (demand garnishment hearing, prove federal exemptions to the wage garnishment, etc.)

      Considering that you are already going through bad financial times, wage garnishment can really make life difficult. It is important that adequate steps are taken to prevent such instances from happening. One of the ways you can prevent garnishment is that according to federal laws, first $217.50 of weekly take-home pay (after deduction of taxes and social security) is totally exempted from garnishment. In case your wage is more than the mentioned amount, your employer needs to pay the garnishing collector either of the smaller amounts:

      • Your weekly pay after deductions and exemptions ($217.50) or
      • 25% of your weekly pay after deductions

      The specific amount is linked to minimum wage. In case the hourly minimum increases from $7.25 per hour, the weekly amount also increases. It must be kept in mind that this rule applies to wages only as per the federal rule. Supplemental Security income, Social Security payments, and unemployment are exempt from any non-governmental garnishing creditors.

      If you wish to tackle the issue of a wage garnishment, it would be better if you take the services of an experienced bankruptcy lawyer. You can opt for filing for bankruptcy under either Chapter 13 or Chapter 7. When you file for bankruptcy, the automatic stay is enforced which stops creditors from taking any garnishment actions. Simultaneously, the defense should be built up to either slow down or prevent the creditors from any garnishment action.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • Benefits of Automatic Stay during Bankruptcy

        Benefits of Automatic Stay during Bankruptcy

        Many people do not realize when they have incurred heavy debts thereby leaving bankruptcy as the last resort. However, not many people are aware that bankruptcy offers a lot of protection to debtors. One of the most important tools of bankruptcy is the automatic stay, which helps stop all actions taken by collection agencies to collect dues from you. In case you are facing eviction issues, foreclosure or repossession problems, due to losing utility or benefits, or are unable to make child support problems; automatic stay comes to the aid of you and your family, in this time of financial mess. (more…)