Wage Garnishment Attorney in Hackensack, New Jersey

When unpaid debts accumulate, a common way for creditors to recover the money they are owed is to resort to a wage garnishment. This occurs when a portion of your earnings are involuntarily withheld pursuant to a Court Order to pay off your debts.   

Wage garnishment can have significant impacts that can further strain your finances and make it difficult to meet your daily living expenses. It can also affect your employment opportunities, and overall financial stability.   

The Law Office of Marc G. Alster is experienced in helping clients with both preventing and putting an end to wage garnishments through filing for bankruptcy. As a bankruptcy attorney with over 30 years of experience, Mr. Alster will provide guidance and support to help his clients which will likely halt the garnishment and help clients work toward rebuilding their financial security.  

Located in Hackensack, New Jersey, the firm proudly serves clients throughout northern and central New Jersey, including Bergen County, Passaic County, Hudson County, Essex County, and Union County, as well as Rockland County, Westchester County, Orange County, and Putnam County in New York. If you’re dealing with wage garnishment due to unpaid debts, reach out to schedule a consultation today.  

What Is Wage Garnishment?

Wage garnishment occurs when a portion of a person's earnings are withheld by their employer to pay off an existing debt. This process is usually initiated by a Court order or a government agency after a creditor has taken necessary and reasonable legal steps to collect the owed amount. While it's a powerful tool for creditors, it often places a significant burden on debtors. 

Types of Wage Garnishment 

Depending on the nature of the debt, different types of wage garnishments can be employed. The most common types include: 

• Consumer debt garnishment: This typically arises from unpaid credit card debt, medical bills, or personal loans. Creditors must first sue the debtor and obtain a Court order to garnish wages. 

• Child support and alimony garnishment: Courts can order this type of garnishment to ensure that an individual meets their child support or alimony obligations. Failure to pay these can lead to more severe penalties and a higher amount of wages being garnished. 

• Tax debt garnishment: The IRS and state tax agencies have broad powers to garnish wages without a court order to recover unpaid taxes. This type of garnishment can often result in higher amounts being garnished from each paycheck. 

• Student loan garnishment: Federal and private student loan providers can garnish wages to recover defaulted student loans. Federal student loans don't require a court judgment, making it easier for these creditors to begin garnishments.

Limitations of Wage Garnishment 

While wage garnishment is a useful tool for creditors, there are legal limitations in place to protect debtors from excessive financial strain. Federal law restricts the amount that can be garnished from a debtor's wages. Typically, creditors can garnish up to 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. 

Some states have stricter limitations on wage garnishment. For example, in New Jersey, garnishments cannot exceed 10% of disposable income if the debtor is the head of a household and earns less than 250% of the federal poverty level.  

Additionally, certain types of income are generally exempt from garnishment. This includes Social Security benefits, disability benefits, retirement savings, and other forms of public assistance. These limitations aim to balance the need for creditors to recover debts with the need to make sure debtors and their families can still meet their basic living expenses. 

Relationship Between Wage Garnishment and Bankruptcy

If you're facing wage garnishment, filing for bankruptcy enacts an "automatic stay" which halts most types of debt collection actions, including wage garnishments. An automatic stay mandates that creditors must immediately cease collection activities, including wage garnishments, allowing the debtor time to reorganize their finances without ongoing debt collection. 

Under Chapter 7 bankruptcy, many debts can be discharged, which will permanently stop wage garnishment for those debts. However, some debts, such as child support, alimony, certain taxes, and student loans, are often unable to be discharged, and wage garnishment for these obligations might resume once the bankruptcy case is resolved. 

In a Chapter 13 bankruptcy called a Chapter 13 Plan (usually three to five years) pursuant to which creditors are prohibited from garnishing wages, debtor is required to make regular payments to a bankruptcy trustee who distributes the funds to creditors according to the repayment plan.  

While bankruptcy can be a powerful tool to stop wage garnishment and restore financial independence, it requires careful consideration and professional legal advice. An experienced bankruptcy attorney can help you determine whether bankruptcy can help with wage garnishment in your situation. 

How Can an Attorney Help? 

By securing the services of a knowledgeable Bankruptcy attorney, individuals facing wage garnishments can likely immediately end the garnishment if they qualify for Chapter 7 bankruptcy protection and significantly improve their chances of safeguarding their financial future, and reducing the stress and uncertainty that are often associated with debt-related issues.  

Some of the services The Law Office of Marc G. Alster offers include: 

• Legal advice and consultation: The firm will provide a detailed consultation to understand your financial situation and the specifics of your wage garnishment. They can explain the legal processes, your rights as a debtor, and potential outcomes, helping you make informed decisions. 

• Filing for bankruptcy: They can help you determine which type of bankruptcy is most suitable for your situation and help you accurately file for your chosen bankruptcy chapter. 

• Negotiating with creditors: They can negotiate with your creditors on your behalf to potentially settle the debt for less than what you owe or arrange a more manageable payment plan. These negotiations can sometimes prevent the need for wage garnishments or having to file for bankruptcy altogether. 

• Assessing exemptions: Every state has laws regarding exempt income and property. The firm can help you identify what portions of your income or assets are exempt from garnishment under New Jersey and New York state laws. 

• Representing you in court: If your wage garnishment has not yet been ordered, the firm can represent you in Court to contest the garnishment, if appropriate. They can argue your case, showing that garnishment would cause undue hardship or leverage any legal defenses applicable to your situation. 

• Filing necessary documents: The firm can make sure all the necessary documents regarding wage garnishment or bankruptcy are accurately completed and filed on time, minimizing the risk of errors that could jeopardize your case. 

Wage Garnishment Attorney in Hackensack, New Jersey

Wage garnishment is a common tool for creditors to recover the money they are owed, but it's not the end of the road. If you are threatened with having a wage garnishment Order entered against you, due to unpaid debts, an experienced attorney can help you determine the best course of action for overcoming a wage garnishment and working toward financial stability. Reach out to The Law Offices of Marc G. Alster today to schedule a consultation.