If you live in the Barrington area, why not consider hiring a Barrington bankruptcy attorney to assist you with debt relief problems. If you allow your financial situation to go unchecked, you may wind up getting a judgment filed against you for failure to pay one of your debts. A judgment can then lead to a bank citation or to a wage garnishment.
In terms of a wage garnishment, the minute that wage garnishment hits, the employer is under an obligation to start deducting your wages, which is 15 percent of your take-home pay. The sooner that you can file a Chapter 7 bankruptcy or file Chapter 13 bankruptcy, the sooner that wage garnishment will stop. Any amount that was taken out prior to your case being filed rightfully belongs to the creditor, and you will not see that money again. However, once the case is filed, the creditor is prohibited from taking any future deductions, and all of your wages will remain yours. Once the bankruptcy case is filed, your attorney will fax, mail, or e-mail a copy of an automatic stay to your employer. An automatic stay is a one-page document which basically states that a bankruptcy case has been filed, creditors may not take certain actions to collect on a debt, and deductions have to stop if they’re being deducted pursuant to a wage garnishment. The automatic stay is created automatically when the case is filed.
Once your Illinois bankruptcy case is filed, the bankruptcy court assigns you a case number and of course the filing date. With this information in hand, your bankruptcy attorney can create that one-page document called the automatic stay, which he can then fax or e-mail or mail to any creditor, especially your employer, to stop a garnishment.
After your bankruptcy case is filed, notice of your bankruptcy will be sent by the Clerk of the U.S. Bankruptcy Court to all of your creditors, your attorney and to you. This is the notice that prohibits creditors from taking future collection actions. If a creditor should continue to collect in spite of the bankruptcy notice, your bankruptcy lawyer could bring a motion for sanctions. The automatic stay is a very important concept in the bankruptcy arena. It is the first benefit that a debtor receives immediately upon a case being filed. The court will not take lightly a creditor who violates the automatic stay. For this reason, most creditors are aware that no further collection efforts can proceed without court approval.