More often than not, people who are under debt are harassed by creditors for their dues. Some of the creditors might resort to garnish wages to clear the debts. However, Los Angeles based law firm Recovery Law Group informs that Texas and some other states do not look at this practice favorably and may not allow creditors to go ahead with it, except in case of special circumstances like federal taxes, spousal/child support or student loans.
Wage garnishment is a process where the creditor gets the permission of the court to withhold any payment made to the debtor via a paycheck and get it forwarded to the creditor instead. If you have not faced any wage garnishment yet, or you fear that the creditors may resort to other tactics to seize your assets, you need to consider bankruptcy as an option to get out of your severe financial mess.
Under federal law, even those states that allow wage garnishment have to follow certain limitations. According to the law, creditors cannot garnish more than a certain amount allowed to them. If you have defaulted on a student loan or owe back taxes, the government cannot help you much; wage garnishment can happen if you do not act on the summons received or lawsuit filed. A large part of your income can be taken away due to wage garnishments. The amount depends upon the reason behind the ruling. In the state of Texas, up to 50% of disposable income can be garnished for child support obligations.
There are some very important and valid points to consider with respect to wage garnishments which debtor might not have thought of. In case your employer is located in a state which allows garnishments, your creditors can use this to enforce garnishment. If wage garnishment is not available, your bank account may be used to get the garnishment.
If you are currently facing any such debt-related issues (foreclosure, utility shutoffs) or fear about wage garnishment, it is important to let an adept bankruptcy attorney take stock of your financial mess and suggest the best possible way to get out of it.