Last updated 1 month ago
Wage garnishment is a means of collecting money from an individual by withholding some portion of his or her earnings in order to pay a debt. Unfortunately, many consumers who are struggling with debt are simply unable to part with their hard-earned pay. Here is what you need to know about wage garnishment, consumer protection laws, and when to contact an attorney.
What is Wage Garnishment?
A wage garnishment is an enforced collection action that usually proceeds by a court order. The process works by requiring your employer to withhold part of each paycheck to make payments toward a debt. While the federal government limits the amount of an employee’s earnings that can be garnished and protects employees from losing their jobs, the amount collected varies greatly. Unfortunately, if you are already in debt, you most likely cannot afford to lose very much of your paychecks.
Who Can Order Wage Garnishment?
Wage garnishment may be ordered if your creditors win a court order requiring you to begin paying off your debts immediately. Wage garnishment may also be ordered by the IRS for consumers who have unpaid tax debt, and this government agency typically seizes as much money as they can from your paycheck to meet your original tax liability and any additional calculated interest or payments. Individuals who are significantly behind on child support payments may also face wage garnishment.
How Can I Stop the Process?
If you are overwhelmed by your financial burdens, filing for bankruptcy puts an immediate end to any wage garnishment proceedings and allows the consumer time to reorganize her debts with Chapter 13 or Chapter 7 bankruptcy.
If you are struggling with debt and facing wage garnishments, contact a bankruptcy lawyer today to find out if filing for Chapter 13 or Chapter 7 protection may be right for you. If you live in Schaumburg, Hoffman Estates, Chicago, Elgin, or McHenry, visit us online or call Cutler & Associates, Ltd. at (847) 849-1834 to find out how bankruptcy can put an immediate halt to your wage garnishment.
Last updated 1 month ago
Have you recently scheduled a consultation with a bankruptcy lawyer to discuss your legal and financial options? While your attorney will be there to guide you through the process at every step of the way, it is always a good idea to prepare for your first meeting. Here are some documents you may want to bring to your consultation.
List of Debts
First, simply make a list of every debt you owe, including all credit cards, your home mortgage, car payments, medical bills, and loans from family and friends. In order for your bankruptcy lawyer to properly analyze your financial situation and legal case, you should provide the name of the creditor and amount owed. You may also bring copies of your student loans debt. It is important to be completely honest with your attorney and disclose all debts; attempting to hide assets will only hurt your bankruptcy case.
Correspondence
Have your creditors been sending you harassing emails or letters? Be sure to bring a copy of all your recent bills as well as any letters that have been sent to you within the last three months. If you can, try to bring one bill from each original creditor, even if it is old.
Income Records
When you meet with your bankruptcy lawyer, bring a copy of your income records, including a paystub. If you are self-employed or do not have the information, bring any records you do have that indicate what your income has been over the past six months.
Legal Documents
If you are involved in any kind of legal action or have legal documents that you think may be important, make copies for your bankruptcy attorney to review. If you were sued or are currently being sued, have a pending foreclosure, or were divorced, bring copies of all relevant financial and legal correspondence and court orders.
At Cutler & Associates, Ltd. of Chicago, your first consultation with a bankruptcy attorney is always free. Call us today at (847) 849-1834 to find out how our experienced legal team can help you discharge your debts.
Last updated 1 month ago
If you are like many Americans, your finances have been especially strained lately, and you may have even missed payments to your creditors. As you will learn in this video, a lawyer can help you deal with abusive debt collectors.
Attorneys have recently discovered hundreds of cases in which debt collectors have violated collection laws. If you are being harassed by a debt collector, you have legal rights that are guaranteed by both the Fair Debt Collections Act and state statutes. An attorney can help you file a complaint in court, and debt collectors are subject to serious punishments for any violations.
To learn more about how a bankruptcy lawyer can help you fend off aggressive debt collections, call the bankruptcy firm of Cutler & Associates, Ltd. today at (847) 849-1834. Our offices are conveniently located in Aurora, Schaumburg, Oakbrook Terrace, and downtown Chicago.
Last updated 1 month ago
If you are being harassed by a debt collector, you know how overwhelming and even frightening the experience can be. Fortunately, consumers have legal rights, and debt collectors are prohibited from engaging in certain behaviors. Here is how hiring a bankruptcy lawyer can put an immediate stop to abusive debt collections.
Incessant Phone Calls
The first sign of abusive and illegal debt collection practices is usually incessant phone calls from a debt collection agency. According to the federal Fair Debt Collection Practices Act, a debt collector is legally forbidden from calling you before eight in the morning or after nine at night. A debt collector also may not contact you at work.
Threatening Language
Debt collectors frequently employ threatening language to forcibly compel consumers to pay debts they either owe or have been mistakenly reported as owing. In Illinois, debt collectors are prohibited from threatening consumers, including sending repeated mailed notices. If you have asked the debt collector to stop calling, draft a letter to the organization requesting that they cease contact and pay for a return receipt to prove that it has been received. If your debt collector still contacts you after that, contact a lawyer.
Improper Disclosure
Debt collectors are often guilty of insufficient or improper disclosure. According to the law, each debt collector must send you a written validation notice telling you how much you owe within five days of their first contact. The debt collector must disclose the name of the creditor, how much money you are said to owe, and how you should proceed if you believe the notice is in error. Debt collectors are also not allowed to send materials regarding the debt collection that indicate the purpose of the correspondence on the outside envelope.
No matter how much money you owe to your creditors, you don’t deserve to be harassed by debt collectors. Call (847) 849-1834 to speak with the experienced bankruptcy attorneys at Cutler & Associates, Ltd. Our legal team is committed to protecting Chicago area consumers against big corporations and deceptive collection conduct.
Last updated 1 month ago
If you have fallen behind on your mortgage payments and are facing foreclosure, filing for bankruptcy may be your best solution. Chapter 7 bankruptcy can delay foreclosure proceedings, while filing for Chapter 13 bankruptcy is a better option for some property owners to save their homes. Here is how a bankruptcy attorney can help you determine if bankruptcy is a good choice for you.
Who Can Use Bankruptcy to Prevent Foreclosure?
For troubled homeowners who are facing foreclosure, bankruptcy puts an immediate stop to all foreclosure proceedings. In many cases, bankruptcy can actually help you save your home permanently. If you are substantially behind in your payments but still have an ongoing income and will be able to make payments at some point, bankruptcy may be your best option.
How Does Chapter 7 Delay Foreclosure?
Immediately after you contact an attorney and file for bankruptcy with the court, foreclosure proceedings—and any harassment from debt collectors—are automatically prohibited. The court then gives the homeowner time to decide how to reorganize your finances. A Chapter 7 bankruptcy can delay foreclosure, but may eventually result in the liquidation of all assets. Some bankruptcy lawyers recommend a Chapter 7 filing because it eliminates all unsecured debt, leaving your mortgage exempt.
How Does Chapter 13 Prevent Foreclosure?
Depending on your financial situation, your attorney may recommend Chapter 13 bankruptcy, which gives you three to five years to repair your finances and hold onto your home. In a Chapter 13 bankruptcy, a court-appointed trustee will outline an income-based repayment plan. If you are able to keep up on your payments, you will emerge from bankruptcy with your property intact.
If you live in the Chicago area and want to learn more about how bankruptcy can put an immediate stop to foreclosure proceedings, call the Schaumburg, Hoffman Estates, Elgin, or McHenry offices of Cutler & Associates, Ltd. at (847) 849-1834. Our experienced bankruptcy attorneys are dedicated to providing the best legal representation for all our Illinois clients so you can begin your road to financial recovery today.
