Stopping Wage Garnishment in Alaska

In Alaska, there are steps people can take to stop wage garnishment. A wage garnishment is where employers are legally required to deduct money from a person’s weekly, bi-weekly or monthly paychecks to pay for a judgment against them. The money is then sent to the creditor until the debt is satisfied. However, for a person who may need to stop the wage garnishment they do have options according to their income.

Negotiate with the Creditor

One way to stop a wage garnishment is to negotiate with the creditor who was granted the judgment. Often times the creditor, according to Nolo, uses the threat of a wage garnishment to receive payment. Therefore, it may be beneficial to negotiate a settlement with the creditor. A settlement means that they accept less than what the original judgment was. Typically, the settlement is paid in a lump or in a number of payments. However, if the creditor won’t agree to a settlement, they may agree to accept payments until the debt is satisfied. Either way, this is one option stop the wage garnishment.

File Bankruptcy in Alaska  

A person can file personal bankruptcy to stop the wage garnishment. Chapter 7 is for unsecured debts such as credit cards. The chapter eliminates unsecured debts without the person having to repay them. However, chapter 13 requires the individual to repay unsecured and secured debts. This means that people are able to pay back the judgment and other bills over three to five years. Both bankruptcy options come with an automatic stay. The stay immediately stops the wage garnishment until the bankruptcy case is completed.

Seek Legal Help

A lawyer in Alaska who specializes in wage garnishment can help anyone interested in stopping the garnishment. The lawyer will evaluate the situation and determine which option is the best one to pursue.