If you have been stuck with an injunction and a garnishment order by a creditor, you are no doubt feeling the burden. Wage garnishment is a tough thing to deal with; even if you know the state of your debts, and you know your creditor is only exercising their legal right to get the money they lent you, it still can feel like a personal attack or an invasion of your privacy. After all, someone is reaching into your pocket twice a month and taking your money. Luckily there are limits on wage garnishment that dictate how much a lender can take.
Bankruptcy Stops Wage Garnishment
The basic wage garnishment limit states that a creditor with a garnishment order against you cannot take more than 25% of your disposable income, or the amount by which your disposable income is greater than 30 times the federal minimum wage, whichever is lesser. (For reference, if the federal minimum wage is $7.25 per hour, that number is $217.50. This means that if your disposable income is x, then x – 217.50 = y, the maximum amount that can be garnished.)
If you are stuck with a wage garnishment order and can see no way out, you might consult a Dallas bankruptcy lawyer to see if bankruptcy could ease your debt burdens. Texas bankruptcy offers a tool called the ‘automatic stay’ that could force a collector to cease garnishing your wages as soon as the bankruptcy is filed. This strategy is far from foolproof, however, so be sure to consult a qualified professional to discuss your financial situation and your options.