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Seattle Bankruptcy Law Blog

When can creditors start garnishing wages?

When creditors are owed money, they have a right to get this money back. However, they cannot do anything necessary to gain back what they are owed. This is because there are laws in place that protect debtors.

Debtors are protected by creditor harassment laws. This means that creditors cannot threaten, repeatedly call, or try to deceive the creditor with the intention of gaining back their owed funds. However, depending on the circumstances, they may be able to ensure that they are repaid through wage garnishment.

Filing for bankruptcy when unemployed

Many people across the United States have a significant amount of debt. While this is never a good situation to be in, it is nothing to be ashamed of. It's common for those who live from paycheck to paycheck to accumulate significant amounts of debt through the use of credit cards. It may be possible to keep up with credit card minimum payments when you have a steady job, but if you suddenly become unemployed and have no savings, you may find yourself in a complicated financial situation very quickly.

Being made unemployed when you have a huge amount of debt and no savings could mean that you quickly face eviction from your home. You'll likely also have letters from creditors demanding that you keep up with your debt repayments. This can be a very stressful situation to be in. Fortunately, filing for Chapter 7 bankruptcy could help you to get back on track.

Why is credit card debt such a common problem?

Credit cards are tools that are primarily designed for convenience. They are intended to only be used by those who can afford to pay them back. However, many people use credit cards as their primary payment method, and they can get into the habit of spending much more than they have the ability to pay back in a reasonable amount of time.

If you are currently struggling with credit card debt, you may be wondering why it is such a common problem in the United States and how it can be dealt with. The following is an overview of the reasons why credit card debt is such a common problem.

Understanding the different forms of debt relief

If you have a significant amount of debt, likely, you have simply lost track of all the bills and interest that you owe. When this happens, tackling debt can be even more intimidating, and many turn to credit cards while ignoring all communication from creditors.

The truth is that simply ignoring the problem will never work in the long-term. With high levels of debt, you will struggle to gain credit in the future, and you'll never be free from creditor communication. The best thing to do is to consider the different forms of debt relief and choose the option that is the best fit for you. The following are some of the different forms of debt relief that you might want to consider.

What property can I keep after Chapter 7 bankruptcy?

If you want to file for Chapter 7 bankruptcy, you probably already know that it's one of the quickest ways to clear debts. Chapter 7 bankruptcy has a lot of benefits: it's available to those who have a low income or have no income at all. In addition, it's the quickest way to file for bankruptcy - the entire process can be completed in a matter of months.

However, Chapter 7 bankruptcy does involve the liquidation of assets. This means that if you own a home or another asset of significant value, you may have to give this up. Not all of your assets will be subject to liquidation, however. There are certain Chapter 7 bankruptcy exemptions available to those filing for bankruptcy. The following is an overview of these exemptions.

How can I avoid credit card debt?

When a person is struggling financially, they will likely start to depend more on credit cards to pay for their daily expenses. This can be tempting to do, but it can quickly spiral out of control, especially if the person starts to pay for non-essential items such as luxury clothing or restaurant food.

If you are worried about your credit card debt getting out of control, consider some of the following strategies so that you can have healthy finances and be free from finance-related stress.

Will I be eligible to file for Chapter 7 bankruptcy?

In difficult financial times, filing for bankruptcy can be a great way to get a fresh financial start and be free from the burden of debt. One of the most popular bankruptcy chapters is Chapter 7. It's a preferred choice for many debtors because it enables them to quickly liquidate assets to pay off debts. In the majority of cases, these debtors will also benefit from a debt discharge, which means that they will be completely free of debt at the end of the process.

While Chapter 7 bankruptcy is a great choice for many, not everyone is eligible. The following are some common reasons why you may not be eligible for Chapter 7 bankruptcy.

How to quickly clear credit card debt

Those with financial struggles often tend to use their credit cards when they are short on funds in their debit accounts. This can become a bad habit and could get out of control over time. If you get behind on your credit card repayment obligations, you may feel stressed about not being able to pay back your debts.

If you are eager to get a fresh start from your credit card debts, the following are ways in which you may be able to do this.

Which debts should I tackle first?

If you have a significant amount of debt, you may be concerned about taking the right action toward becoming debt-free. Having a lot of debt can mean that you will be poorly equipped to deal with a job loss or other financial emergency.

This is why it important that you start to address your debts sooner rather than later. However, it can be difficult to know where to start. Following are some tips for tackling debts.

Mistakes people make with credit cards

When used like a debit card, credit cards often don't cause any problems. You just spend less than you earn and pay it off at the end of the month, rather than taking money out at the time of each purchase, as you do with a debit card. It's the same general principle.

Where people get into trouble with cards is when they make simple mistakes that can quickly lead to overwhelming debt. These cards are a risk, as they're designed to make money and that often means putting consumers in a problematic position. Some of the mistakes people make include:

  • Paying the minimum every month, which means you pay interest on whatever is left.
  • Leaving a balance on the card, rather than paying off the statement balance each month.
  • Not knowing what fees the card comes with; for example, some cards come with an annual fee and some do not.
  • Forgetting to pay the card off on time. Just one missed payment can generate a lot of extra debt.
  • Putting more on the card than they can actually pay. If you make $5,000 a month and you max out a card with a $10,000 limit, you may start a cycle of debt.

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