Bank Account Garnishment & Bankruptcy: Your Guide
At the Loris Law Firm, we specialize in bankruptcy Mobile AL. Financial hardships can happen to anyone, and if you need a bankruptcy attorney Selma, we can help. We’re here to explain everything you need to know about bankruptcy and having your bank account garnished.
An Explanation Of A Bank Account Garnishment
If you have debts that you don’t pay off, a debt collector can sue you to get the money. When they win the lawsuit they are legally able to garnish your bank account until your debt is paid off. Your bank doesn’t even have to contact you to let you know this is happening unless the garnishment leaves your account with a negative balance. The creditor you are in debt to will be the one to inform you that your bank account will be garnished.
The process debt collectors go through to win a lawsuit is complex. It starts with filing a lawsuit and letting you know that the suit has been filed against you. The debt collector will also inform the courts of your pending lawsuit. Before your bank account can be garnished, a court official has to sign off on an order of garnishment. It should be noted that none of this is necessary in the event the IRS is who you owe money to.
How To Stop A Bank Account Garnishment
When you have tried other options and had no luck, the last option you have for stopping a bank garnishment is to file for bankruptcy. In the event you need to, it is best to immediately contact a Mobile AL bankruptcy attorney. Obtaining a lawyer to stop a garnishment means that an injunction will be activated. This is usually all it takes to get debt collectors to leave you alone.
In some cases, when you file for bankruptcy you may be able to recover the money that was taken from you. This is where it pays to have a bankruptcy attorney Mobile AL. It is especially important to have a bankruptcy attorney Mobile Alabama if you can prove that the debt your bank account is being garnished for, isn’t yours. In this case, challenging a judgment against you is something that needs to be done within five days.
However, if a debt is legally yours, an attorney will advise you that the best way to stop a bank account garnishment is to file for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.
Holding Onto Your Money
Certain types of income cannot be taken from you in order to pay off debts. For example, any money you get from Social Security or veteran benefits is money that cannot be garnished from your bank account. The same is true for worker’s compensation and welfare. If a debt collector is trying to take money from you under these circumstances, a bankruptcy attorney Robertsdale can help you.
If you find yourself in debt because of credit cards or medical bills, you should know that filing for bankruptcy may be able to get those debts eliminated without paying them. However, there are certain circumstances under which your bank account may still be garnished anyway. An attorney can fight for your right to keep the money you do have.
In order to get your money back, you have to file for bankruptcy quickly. As long as you do so before your creditor has been paid, this will successfully block the garnishment. A Mobile AL bankruptcy attorney can help you file quickly enough to protect your money.
There are rare circumstances where once you have filed for bankruptcy, your creditor may go to court and try to have the injunction lifted. You will always need a bankruptcy attorney Selma, from Loris Law Firm, to fight for you.