If you owe debts that you cannot pay, collectors will be hot on your heels for payment. One way that they can get the money they claim you owe them is through wage garnishment.
You may wonder if or how that could potentially affect your employment. While an employer technically cannot fire you for having your wages garnished once, if you acquire multiple garnishments, that protection n longer applies.
Wage garnishment and your paycheck
Despite the protection from termination offered by federal and state governments, your paycheck could still be in jeopardy, especially if you are a lower-wage worker. Imagine trying to live on the minimum Tennessee wage of $7.25 after the garnishment is deducted.
Since they can deduct as much as 25% of the disposable net income — and if it’s for federally protected student loans or child support, the rate could be even higher — you could wind up with barely enough to support yourself.
What can end a garnishment?
Repayment, of course, is the most desirable ending. However, that’s not always an option for everyone. If you have bills that you cannot pay and want to avoid or shut down a garnishment action, filing for Chapter 7 bankruptcy is a viable option for many Tennessee residents.
It is important to understand that student loan and child support debts are not dischargeable by bankruptcy. Ditto for most unpaid income tax arrearages. But filing for Chapter 7 bankruptcy can discharge other debts, thus freeing up income that will leave more funds available to pay those nondischargeable debts.
Learning more about the complex bankruptcy laws can help you determine whether you are a candidate for filing for Chapter 7 bankruptcy.
