To stop wage garnishment in South Dakota you should assess your options according to you financial circumstances. A wage garnishment occurs when a creditor you owe such as a credit card company or debt collection agency sues you in court for the money that you owe them. If creditors are successful, a judge grants them a judgment. The judgment leads to a wage garnishment where your employer takes up to 25 percent of your paychecks and sends it to the creditors until the debt is paid. However, you can stop a wage garnishment in different ways.
Filing personal bankruptcy in South Dakota immediately stops a wage garnishment. An automatic stay is the legal option that requires your creditors to stop taking money out of your paychecks until the bankruptcy case is complete. If you are eligible for chapter 7, your debts can be wiped out in approximately four to six months. This means you won’t have to pay creditors. However, if you are eligible for chapter 13, you will have to pay creditors over a 36 to 60 month period.
Typically, according to Nolo, creditors use wage garnishment as a threat because they believe it will make you pay back the money instead of having your employer deduct it out of your paychecks. Thus, negotiating with your creditors can help you stop a wage garnishment. Most creditors stop the wage garnishment if you pay a settlement amount (may be a lesser amount than the original judgment) or make payments. However, the garnishment may resume if you miss a payment.
Lawyers who specialize in wage garnishments can assess your financial situation and suggest some options for you. For instance, the lawyer may suggest you return to the court that issued the judgment and request the wage garnishment be stopped because of hardship.