When creditors fail to get paid, they may choose to take the matter to court in order to seek payment. If they are successful, a judge may order wage garnishment or a levy, which gives your creditor the right to take your money and/or your property. In Tennessee, you may be able to stop your creditor by filing for bankruptcy and/or property exemption.
What are wage garnishments and how much can my creditor take? If a judge grants a creditor a wage garnishment order, it means that the creditor will have the right to collect a portion of your paycheck before it hits your bank account. How much they get depends on how much you make, how much you owe and the number of minor children you have living in your home. In other words, it is different for everyone.
What is a levy? A levy allows a creditor to take one's property. Most creditors are most interested in the assets you have in your bank account, but other property can be taken to satisfy the debt. It is possible to ensure some money and/or property is exempt from the levy, but the exemption must be filed in court before a levy is filed by the creditor.
When it comes to stopping wage garnishments or a levy, timing matters. If you do not file for bankruptcy or property exemption in a timely manner, it may not be possible to stop a creditor from taking your money or your property. To learn more about this and how an experienced Tennessee-based bankruptcy attorney can be of assistance to you, please take a moment and visit our firm's website.