Garnishment?
Unsecured creditors in relation to garnishment laws do not hold any collateral that they can take from you if you fall behind on your payments. They must first go to court and obtain a judgment in order to collect their money. If you don’t pay the judgment voluntarily, your creditor may file for a garnishment with any party that owes you money. For example, your paycheck, tax refund and bank accounts. Typically, a garnishment is served upon your employer who is directed to pay a portion or your wage to your creditor. A garnishment may also be served upon your bank or credit union. Most of the money in these accounts will be turned over to your creditor. In Colorado the maximum percentage that may be withheld your paycheck is 25%. For most debts, both Chapter 7 and Chapter 13 bankruptcy, will stop garnishments. It’s very important to protect your paycheck. If you don’t, you may not have the funds available to make your rent or house payments. If you feel you have been taken advantage of
