If your wages have been garnished, you may be required to pay creditors 25% of your wages, according to the law of Kentucky. This is known as wage garnishment, which is a legal recovery method that creditors can use to collect on a debt that they are owed. Once a garnishment is issued, it is common that a lean will also be put on any property that you may have. However, there are methods that you can use to stop this from happening, such as filing bankruptcy.
Wages Garnishment
In Kentucky, your debts that are open, or have been opened, for the past five years could qualify for wage garnishment. Creditors can also seek garnishments for written contracts that have been active for 15 years or less, according to the Kentucky statute of limitations.
Your wages can be garnished for a variety of reasons, including:
● Debt owed to a creditor
● Support orders (child support, alimony, medical support, etc…)
● Tax levies
● Student loans
● Administrative wage benefits (such as over-payment of state benefits)
There are some wages that Kentucky law protects from wage garnishments, including:
● Pension benefits
● Worker’s compensation
● Unemployment benefits
● Crime victim’s compensation
● Assistance to low income families
● Annuities and insurance policies (broad)
● Disability or health benefits
● Life Insurance policies (including group policies)
In Kentucky, your wages can only be garnished if your after-tax income per week is higher than the minimum wage amount ($7.25) multiplied by 30.
How can I Stop Wage Garnishments?
You have the ability to object to a wage garnishment, but this objection will depend on the type of debt that you have. You could object on grounds of financial hardship, or to dispute the debt. However, until you go to court and a decision is made, your wages will continue to be garnished. Another option is contacting the creditor and negotiating a payment plan. Most of these options are usually unsuccessful.
One of the most successful methods used to stop wage garnishment is by filing Chapter 7 bankruptcy, where you get a total fresh start. Or filing Chapter 13 bankruptcy reorganization, which pays back a reduced amount that you can afford and affects your credit less. As soon as you file for bankruptcy, the judge will issue a stay, which means that creditors are not allowed to garnish your wages until a decision has been made in your bankruptcy case. The wages that you earn after filing bankruptcy in Kentucky will be yours, not the creditors or the bankruptcy court. Unlike other states within the US, there is no minimum amount of debt required to file Chapter 7 bankruptcy in Kentucky. If your case is successful, your debt could be erased in its entirety. Bankruptcy cases in Kentucky generally take between three to six months to discharge.
Hiring a Bankruptcy Attorney
If you have been subjected to wage garnishment, you should consult with an experienced Kentucky bankruptcy attorney immediately. Since 1987, attorney W. Ron Adams has been providing legal representation to clients within the Northern Kentucky area. When you contact the law offices of W. Ron Adams, one of our professional team members will help you schedule a consultation. At this time, you will learn what your obligations are, in addition to all of the rights and options that you have.