When bills begin to pile up, some have nowhere to turn. Almost no one wants to fall behind, and many are shocked when their paychecks come up short on payday. Read on and find out how that can happen and what can be done about it.

Collection Actions

Late payment notices will only go on for so long before bill collectors take more serious actions. When you are unable to pay what you should, creditors can take debtors to court. In most cases, the court case will result in what is called a judgment. The judgment says that you must pay a certain sum of money to the creditor. The sum includes your original debt, interest, late charges, and legal fees. You might find that after the judgment, you now owe two or more times the original amount. That is not the worst of things, though. You might also face wage garnishment.

Wage Garnishment

Those who work hard but still cannot get their bills paid may soon find that their paychecks are seriously short of money. That is because once the court has ruled in a creditor's favor, they can contact your employer with orders to garnish your wages. The amount garnished varies with most states limiting the action to a certain percentage of the full paycheck of the debtor. The wage garnishment order remains in place until the debt is paid, including all the extra charges. You need every penny of your pay, and this will make an already bad financial situation even worse. When wage garnishment threatens to reduce your pay and create hardship for you and your family, you must consider filing bankruptcy.

Bankruptcy and the Automatic Stay

Though it's not an easy decision, filing Chapter 7 bankruptcy puts to stop to things like wage garnishment right away. Only certain debts are exempt from the automatic stay. If your wage garnishment is a result of owing money to the IRS, student loans, or back child support, the order might remain in place. However, for debts like personal loans, medical bills, credit card bills, and payday advances, the wage garnishment will come to an almost immediate stop.

Talk to a Lawyer

The sooner you speak to a bankruptcy lawyer, the sooner you can begin receiving a full paycheck again. In addition to that, you can stop paying your credit card bills, medical debts, and more. Speak to a bankruptcy lawyer about what a Chapter 7 filing can do for you. You deserve a fresh start so get what you need to today.

If you need help filing for bankruptcy, contact a law firm like Ozment Law PA.