A wage garnishment is, in a sense, the last in a series of steps that a creditor goes through to collect a debt. If you are facing a garnishment of your wages, you have probably seen most of the previous stages. The creditor added late fees as encouragement to pay promptly, followed by letters and phone calls to collect. Your debt was possibly turned over to a debt collector, who continued these same, often harassing efforts. Eventually, the matter went to court, where the creditor won a judgment against you.

Now, the creditor is attempting to enforce its judgment through wage garnishment, which significantly cuts into your income. You might be feeling powerless, but you do have rights. Protecting them requires you to retain skilled legal counsel, even though your finances are already stretched. To prepare you for what to expect, you can review some background on what it costs to hire an Athens, GA wage garnishment lawyer.

Costs for a Wage Garnishment Attorney

There are two options for billing when you retain a lawyer to help with a wage garnishment case:

1. You could be required to pay a flat fee, which is based upon a review of your situation and whether there are options to fight the wage garnishment.
2. You could pay an hourly rate for your attorney’s time, which is more likely with complicated cases.

Keep in mind that there are limited options to eliminate or reduce wage garnishment. The legal process has run its course, though you can contest certain factors. Examples include a creditor taking too much than allowed by law or where you do not owe the debt because of fraud.

When consulting with a wage garnishment lawyer, you may learn that bankruptcy is an advantageous solution for managing your debt. Fortunately, when you file Chapter 7 or Chapter 13, the automatic stay puts an end to wage garnishments.

Calculating Wage Garnishments in Athens

There is a specific formula for determining the amount of wage garnishment in Georgia, and it starts with assessing your disposable income. A creditor can only garnish the lesser of:

• 25 percent of your disposable income, which is your earnings after deductions for taxes and other designated expenses; or,
• The amount by which your disposable income exceeds 30 percent of the federal minimum wage, currently $7.25 per hour.

If a creditor does attempt to take more than the legal amount from your wages, you have powerful remedies to recover. An attorney can assist with getting reimbursement for funds wrongfully withheld. However, reviewing these amounts gives you an idea of how your earnings dwindle with wage garnishment. When you struggle with debt on top of reduced earnings, it may be time to consider bankruptcy options. The automatic stay with Chapter 7 or Chapter 13 bankruptcy eases the financial strain by ending wage garnishment.

Limitations and Exemptions in Athens

The outlook for a wage garnishment may look grim, but you should note that there are some types of income that the creditor cannot touch. Examples include:

• Social Security retirement benefits;
• Benefits under the Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) programs;
• Amounts you receive as student loans;
• Georgia state welfare benefits;
• Unemployment compensation; and,
• Child support you receive.

In addition, there are special rules for pensions and retirement plans. Many of these benefits are exempt, including plans covered by the Employee Retirement Income Security Act (ERISA). Veteran’s benefits, workers’ compensation benefits, pensions for federal and state workers, and many other benefits are not submit to garnishment.

How to Cease Wage Garnishment in Athens

Because of the limited options to end wage garnishment, it is worthwhile to consider bankruptcy. To provide additional background:

• Chapter 7 is discharge bankruptcy, in which you eliminate all qualifying debt at the end of the process. Eligibility rules depend on your income, as measured by the state median income or the Means Test.

There is a chance that your assets will be sold by the bankruptcy trustee because the Chapter 7 process also includes liquidation. You can protect many through exemptions, and others you may be willing to sell to gain the benefits of bankruptcy. Even if you do have non-exempt assets, the trustee may opt to avoid liquidation because of the low value.

• Not everyone will qualify for Chapter 7 under the income thresholds, and other people may want to avoid it because they have assets to protect. Chapter 13 may be an option for ending wage garnishment and handling other debts. The process involves the development of a debt repayment plan, which pays back a percentage of what you owe to creditors.

The monthly amount for a Chapter 13 debt repayment plan is based upon what you can afford, so the key eligibility criteria is that you have a job producing a steady income. You will comply with the plan for three to five years, and then qualifying debts are eliminated.

Get Legal Help from an Athens, GA Wage Garnishment Attorney

This overview on wage garnishments is useful, especially when you know that there are ways to stop the proceedings and get control over your entire financial picture. Chapter 7 and Chapter 13 bankruptcy are not the right fit for everyone, but our team at Morgan & Morgan, Attorneys at Law, P.C. can explain the benefits for your situation. Please contact us to set up a free consultation. An Athens, GA wage garnishment lawyer will review your situation and advise you on options.

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Lee Paulk Morgan

Lee Paulk Morgan

With more than 41 years of experience in the areas of Bankruptcy, Disability, and Workers’ Compensation, Lee Paulk Morgan is one of the most respected Bankruptcy and Disability attorneys in Athens, Georgia. His tireless dedication to serving clients has gained him the reputation of a premier attorney in his areas of practice, as well as the trust and respect of other legal experts, who often refer clients to him.