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Avoiding Lawsuits, Bank Levies, & Wage Garnishments
The debt industry is changing, and more and more of unsecured debt is being placed with collection law firms, versus collection companies. Arizona has several large collection law firms that handle the bulk of unsecured debt, including Bursey & Associates, Guicleumo & Associates, and Hameroff Law firm in Tucson. If you have unresolved debt that remains outstanding, it is a very high probability that eventually you will be sued on the unresolved balance.
Unresolved debt, such as credit cards, leads to lawsuits, wage garnishments, and bank levies.
A civil lawsuit turns a collection account into a judgment. Once a creditor has received a judgment, a creditor can garnish wages and/or levy a bank account. In the state of Arizona, creditors can garnish wages up to 25% of a debtor’s income. That number is staggering, especially considering financial hardship may have gotten you into this situation in the first place. Wage garnishment is known as “writ of garnishment” to the court and occurs when a court instructs an employer to withhold funds from a debtor’s wages for the benefit of a judgment creditor. When a wage garnishment occurs, not only will you be aware of your financial struggles, but now your employer may be aware as well.
A bank levy is when a judgment creditor takes money from your bank account. An individual is not notified in advance, but rather will be told after the fact, that funds have been removed from their bank account(s) via a court order. An individual can protect $300.00 in their account, and a married couple can protect up to $600.00 in an account. Social security is also exempt up to 100% of the proceeds traceable in the account. In addition to a court ordered bank levy, credit unions (and some banks) will withdraw money from an account to satisfy an outstanding or delinquent debt with that same financial institution. For example, Vantage West Credit Union could/will offset money from a checking account to pay towards a delinquent Vantage West credit card.
If bankruptcy is the right financial tool, it will immediately end wage garnishments. All garnishment efforts will be forced to cease when a bankruptcy petition is filed. Bankruptcy will also prevent bank levies and resolve outstanding judgments.
Mr. Foley handled my chapter 7. After my first meeting with him I instantly felt better about the whole thing. I was stressed about my finances and felt guilty for even considering a bankruptcy. I felt like a total failure. Mr. Foley was able to help me see that it was the right business decision and was also able to help me by pointing me to resources for a redemption loan on my vehicle. If you are considering a bankruptcy attorney, I would recommend you consult with Mr. Foley.
July 18, 2017
Your Excellent Choice
Matt and his team rock !!!!!!!!
They took the stress and worries out of the whole process and made it smooth and stress free. He and his staff are caring, knowledgeable, very organized, honest and affordable. They responded quickly to any questions or concerns I had.
I would highly recommend Matt and his team to anyone who needs a bankruptcy…… Thank you so much
July 13, 2017
Very helpful even though not client (yet)
Matthew represented us at a Trustee meeting when our Phoenix attorney could not be present. He was knowledgeable and helpful. In addition, when my existing attorney became “disengaged”, we contacted Matt and he spent a lot of time helping us understand some issues we were having. He was supportive, helpful, and gave excellent advice even though we were not his clients. I highly recommend him and he will be my first call for any future legal issues.
May 23, 2017
Caught in a Bind
I was in a real bind and not knowing the law, I contacted the best reviewed bankruptcy lawyer in town. After the consultation I left feeling better about my situation with a much better understanding of the law. The man knows his stuff and is very knowledgeable. I hired him and he did an amazing job. I literally did nothing but answer questions in an honest manor. The staff is a collection of incredible people, who are kind and very nice and understanding towards your situation. Thank you so so much for everything and would recommend the heck out of this gentlemen. Awesome experience.
March 6, 2017
Matt and his team rock!!! They took the stress and worries out of the whole process and made it smooth and stress free. He and his staff are caring, knowledgeable, very organized, honest and affordable. They responded quickly to any questions or concerns I had. I would highly recommend Matt and his team to anyone who needs a bankruptcy or debt settlement attorney.
October 21, 2016