People with low incomes that are facing wage garnishment to pay a debt can keep a little more of their paycheck beginning July 2013 thanks to the passage of Assembly Bill 1775. AB 1775 provides a modest increase on the amount of wages that are exempt from a wage garnishment. Under the present law, someone making the federal minimum wage could only protect $217.50 of their weekly take home pay. This amount will increase to $320 per week beginning January 1, 2013.
Proponents argue that the new law will enable people to afford more groceries or help them pay the rent. While it is true that the existing low level of exemption could leave a family in a precarious financial situation, having a creditor slap a wage garnishment is a pretty good sign that bankruptcy should be considered.
Creditors typically do not file lawsuits unless a borrower is at least 4 to 6 months delinquent. After that, it can often take the court 6 months or more to enter a judgment. Then the creditor needs to locate where you work and then have the sheriff serve a wage garnishment on the employer.
If you are facing a wage garnishment, the chances are very good that you are having lots of other debt problems that can be addressed in bankruptcy. Please contact us today at (619) 448-2129 for a free consultation regarding your options on how to deal with your debt problems.