There are various options such as creditor negotiation to stop wage garnishment in Arkansas. For instance, with a creditor negotiation you and your creditor either negotiate a settlement (less money that the judgment was for) or a payment schedule. Typically, creditor negotiation stops a wage garnishment because you agree and do pay the debt according to the agreement. However, if you are not able to pay your creditor the amount of money that they are asking for, all is not lost. In other words, you can still stop the wage garnishment.
Personal bankruptcy in Arkansas consists of two options. Chapter 7 totally eliminates unsecured debts such as credit card or medical bills debts usually in approximately six months. Chapter 13 requires you to pay on debts over a three to five year period. Whether you’re eligible to file for chapter 7 or 13, you will receive an automatic stay. An automatic stay stops a wage garnishment against you. This means that the creditor must stop taking money out of your pay check immediately. If the creditor doesn’t, they can get in trouble with the U.S. Bankruptcy Courts.
You can go back to the court that issued the judgment and request that the wage garnishment be stopped. In addition to filing paperwork, you have to prove in court that the wage garnishment is creating financial hardship for you. In other words, you can’t pay your basic bills such as rent, utilities or medical bills. If the judge agrees, then the wage garnishment is stopped.
A lawyer can help you determine the best option for you to stop wage garnishment against you. The lawyer will review your situation and tell you if bankruptcy or a claim exemption is best for you.