Stop Wage Garnishments in Ohio

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Stop Wage Garnishments Suggestions on How to Stop Wage Garnishments if you are an Ohio Resident

Garnish: Not Just What Bartenders Do With Fruity Drinks

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  • Garnishments are one of the most painful ways of repaying debt.
  • A wage garnishment is a good reason to consider seeking the protection of the Bankruptcy courts.

Nobody Wants To Garnish You

  • Wage garnishment is a hassle for you and the creditor.
  • You don’t want money deducted unexpectedly from your paycheck.
  • The creditor would prefer to receive a larger, one-time payment that doesn”t have to split with the lawyer handling the wage garnishment. Everyone loses.
  • For most creditors it is a last resort, a checkmate, the anti-Bankruptcy: wage garnishments enlist the legal system to force your wallet open.
  • Bankruptcy enlists the legal system to help shut it again.

They Have To Sue You First

  • Before a creditor can garnish your wages, the creditor must prove to a court that you owe that money.
  • This requires a lawsuit.
  • Unfortunately, most debtors don’t fight wage garnishment in court, and let creditors proceed to what’s called “default judgment,” or as we used to say in T-ball, a “forfeit.”
  • With judgment in hand, the creditor can ask for a writ of wage garnishment that orders employers to deduct a certain amount, at a rate and frequency that is usually determined by statute, from your paycheck, which is then sent on to the complaining creditor.
  • Almost every jurisdiction prevents creditors from garnishing so much of your wages that you can’t afford food, shelter or other basic necessities.

Bankruptcy Is Not Always Good Option For Some Garnishments

  • Sometimes creditors levy wage garnishments to recover taxes, domestic support, or criminal fines.
  • In those cases, a Bankruptcy won’t do you any good.
  • Unfortunately for debtors (but in many cases, fortunately for society), the Bankruptcy laws don’t discharge those debts.
  • There are usually other opportunities to resolve the debts outside of wage garnishment, through negotiation or other legal approaches like adjustments to child support orders.
  • An attorney can help you get those kinds of problems sorted out, and most will discuss the problem with you without a fee.
  • For other debts–that unpaid credit card, for instance–Bankruptcy can be a good solution.

Yeah, But How Do I Stop The Dern Thing?

  • A Ohio Chapter 7 Bankuptcy, or liquidation, reduces debtor’s assets to cash, if possible, and doles the surplus out to creditors in order of their security status.
  • Security being determined by whether there’s property tied to a loan, like a house or a car, as opposed to a credit card, the payment of which is unsecured, or not reliant on the property it’s used to obtain.
  • A “stay” or court ordered stop in collections and garnishments, takes affect the moment a case is filed.
  • The Court hires a private lawyer called a “trustee” to oversee the evaluation and distribution of the debtor’s property.
  • Many Chapter 7′s are “no asset” cases, meaningĀ  the debtor owes more in total than his property, taken together, would sell for.
  • Once a trustee has evaluated the case and made distributions or declared a “no asset” status, the debtor will, a few months following, be “discharged” or released from responsibility for the debts.
  • This discharge applies to wae garnishments!

Another Way, If We Must

  • Bankruptcy laws were rewritten in 2005 by credit-card lobbyists, and enacted by their pals in Washington.
  • Middle-class debtors must submit to a “means test” to see whether they can discharge their debts in a Chapter 7.
  • Now, if a debtor’s’ income exceeds the debtor’s home state’s median income, the debtor may have to file under Chapter 13 Ohio Bankruptcy instead.
  • Chapter 13 debtors pay some portion of their debts back over a period of three to five years.
  • In a Chapter 13, debtors propose a “plan” to repay creditors.
  • A Bankruptcy court holds a confirmation hearing to determine the fairness and legality of the proposed plan.
  • In a Chapter 13, debtors keep their property and make regular payments to their creditors, usually at a drastically reduced rate.
  • Over the life of the plan–again, three to five years–debtors are protected from lawsuits and collections, including wage garnishments.

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