One of the worst parts about struggling to overcome debt is wage garnishment. In many instances, creditors who receive judgment against you can have your wages garnished which means your paycheck will not even reach your bank account but instead go straight to the creditors.

If this is happening to you, then you can understand how negatively this can impact your life. Most of us need our full paycheck to live and to pay for the day-to-day expenses such as food, fuel, clothing, electricity, etc. If this is reduced, then you are likely going to be struggling a lot more than necessary. Furthermore, it also means that your family will suffer. After all, if there is no money for groceries this week, it is not only you who won’t be eating; it is also your children.

Wage Garnishment & Bankruptcy

In Minnesota, wage garnishment rules allow creditors to take:

25% of the disposable earnings (after taxes and social security reductions)

The amount of the disposable earnings that exceed 40 times the federal minimum hourly wage.

25% of your disposable income may not seem like a lot but, in reality it is. In fact, most people will live off around 25% of their income once all the bills have been paid. Here is an example:

How Wage Garnishment Can Affect You

In a household where the husband goes to work and the mother stays home with the children, the disposable income per month may be $4,000.00. But where is this all going?

• Mortgage/ rent payments: $1500.00 per month
• Vehicle payments: $400.00
• Additional loan payments (student loans, credit card debt): $250.00
• Phone, internet, electricity and other monthly bills: $300.00
• Fuel to commute to work/ run errands: $250.00
• Groceries: $1,000.00
• Emergency spending money (diapers, clothing, swimming lessons, etc): $300.00

All of a sudden your monthly paycheck is gone. However, if you are losing 25% of your income, or $1000.00 in this instance, suddenly you cannot afford to live. You are losing out on a month’s work of groceries or you are unable to pay certain bills. You are either only paying the minimum or skipping out on payments completely. There is so way to get ahead and will most likely result in more financial and emotional strain.

Contact Us Today For A Free Consultation

When you file for bankruptcy, whether it is Chapter 7 or Chapter 13 bankruptcy, wage garnishment will stop immediately. This means that, while you are waiting for your court appearance and filing the paperwork, you will not have to worry about making it through another week. That 25% of your paycheck will go into your account so you can be sure you and your family will make it through another week.

Heimerl & Lammers are the best in Minnesota bankruptcy attorneys and can provide you with the assistance needed to put an end to wage garnishment and file for bankruptcy. Give the Law Offices of H&L a call today for a free initial consultation, expert advice and professional service that can make all the difference in the world.

Heimerl & Lammers practices in all eighty seven counties of Minnesota including, Hennepin County, Ramsey County, Scott County, Carver County, Washington County, Anoka County, Wright County, Sherburne County, Chisago County, Isanti County, Stearns County, Dakota County, Cass County, Blue Earth County, Olmsted County, Sibley County and St. Louis County.

We represent Minnesota Bankruptcy Law clients throughout the Twin Cities including Minneapolis, Champlin, Brooklyn Park, Brooklyn Center, Eden Prairie, Edina, Excelsior, Hopkins, Long Lake, Lino Lakes, Maple Plain, Minnetonka, Monticello, Mound, Osseo, Otsego, Rogers, Saint Bonifacius, Saint Paul, St Paul, Spring Park, St Louis Park, Wayzata, Woodbury, White Bear Lake, Plymouth, Maple Grove, Eagan, Eden Prairie, Burnsville, Bloomington, Buffalo and throughout Minnesota.

Disclaimer: We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code.