Two Ways to Fight Back Against Wage Garnishment (Protect Your Income!)

TL;DR

Learn how you can reduce or eliminate wage garnishment in Arizona through Proposition 209 or filing for bankruptcy.

Transcript

hey everybody John skiba here from the consumer Warrior YouTube channel in today's video I'm going to share with you two ways that you can either reduce or even eliminate a wage garnishment if you're in the state of Arizona but if this is your first time here to my YouTube Channel please go ahead click subscribe check on that little bell that way y... Read More

Key Insights

• 🫒 Wage garnishment is a significant issue for individuals living paycheck to paycheck.
• ❓ Creditors must sue and obtain a judgment before initiating wage garnishment.
• ❓ Proposition 209 in Arizona has reduced the maximum percentage of wages that can be garnished from 25% to 10% for creditors with a judgment.
• ✋ Filing for bankruptcy can completely stop wage garnishment.

Questions & Answers

Q: How does wage garnishment come about?

Wage garnishment occurs after a creditor sues and obtains a judgment against an individual. They then apply for a writ of garnishment, which is served to the individual's bank or employer to initiate the wage garnishment process.

Q: Can wage garnishment happen immediately after missing a credit card payment?

No, wage garnishment does not happen immediately after missing a credit card payment. Even if a creditor sues, it can take several months before they can obtain a writ of garnishment and start wage garnishment.

Q: How can Proposition 209 help reduce wage garnishment in Arizona?

Proposition 209 changed the law in Arizona, reducing the percentage of wages that can be garnished from 25% to 10% for creditors with a judgment against an individual. Objecting to the garnishment based on Proposition 209 can result in a reduction to 10%.

Q: Can filing for bankruptcy stop wage garnishment?

Yes, filing for bankruptcy immediately stops all collections, including wage garnishments. Once a bankruptcy case is filed, an automatic stay is issued by the court, halting all collection activities, including wage garnishment.

Summary & Key Takeaways

• Wage garnishment is a challenging debt issue that affects many American households, with 75% of them living paycheck to paycheck.

• Creditors cannot garnish wages or bank accounts without suing and obtaining a judgment first, which can take several months.

• In Arizona, individuals can reduce wage garnishment through Proposition 209, which limits the percentage of wages that can be garnished to 10%. Filing for bankruptcy can also stop wage garnishment completely.