Court Judgments: State & Federal Law Dictate How Much of Your Pay Can Be Garnished
Are you stressed out about debt? If so, you have plenty of company around the US—and especially as household debt continues to rise to historical highs. Credit cards are a major issue for many consumers today, and you may be overwhelmed after falling ill or having an accident that was so debilitating you could not go to work, whether temporarily or permanently. Often more than one unfortunate life event may be occurring at the same time too, such as a separation or divorce, or an aging parent who needs caretaking.
Student loans have become another problem affecting the financial health of millions around the US, and possibly your own personal economy too. If you have private student loans, this can be especially true as the balances owed may be substantial. Without an income to pay them, you could experience serious repercussions from the private loan servicer. Your home may in threat of foreclosure, the car near repossession, and the calls from debt collectors may be endless.
In the wake of so much financial chaos, it is likely that a creditor or debt collection agency will eventually sue you. While consulting with an experiencedcollections lawsuit attorney from a firm like Fitzgerald & Campbell, APLCis in your best interest, if you fail to reply or show up in court, a default judgment will most likely be granted against you. This makes matters complicated on several levels. First, your credit report is likely to be heavily impacted. Next, if you do nothing, you are in danger of having any property seized, along with bank accounts frozen. But worst of all is having your pay intercepted. Although you may be served a notice informing you of wage garnishments, such action could begin occurring quickly, and put a major damper on your already stressed budget.
Wage garnishing is regulated by both federal and law, so that only a certain percentage can be deducted from your paycheck, with your employer being court ordered to do so. Federal law states that only 25 percent of your disposable income can be deducted, and it is up to the state you live in to make that requirement lower; however, in California, the law is 25 percent also.
If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted.
Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at firstname.lastname@example.org.
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