As a business owner or proprietor, you may encounter scenarios of wage garnishment during your career. These can happen for several reasons, but the general cause of wage garnishment stems from an employee being unable to repay debts. Creditors, once they receive a judgment and court order, can have a business owner or proprietor withhold a certain amount of money from an employees pay check to pay towards the judgment. Here are key pieces of information you need to know about wage garnishment before you spend another year hiring and managing employees:
Wage Garnishment is Not Optional
If your employee has been ordered to have part or all of their wages garnished, this is out of both their control and yours. The only action an employee can do to contend with this ruling is to appeal it through the courts with the help of a Phoenix, AZ wage garnishment lawyer. Until a ruling overturns the creditor’s ability to seize their wages, they will have to allow it – and you will have no choice but to remit those wages on their behalf.
Wage Garnishment is Your Responsibility
Employers who are served with a writ of wage garnishment by the courts have the responsibility to comply. This means that no matter how much you may like and sympathize with your employee, failing to comply with the garnishment of their wages could land you in legal hot water, too.
Bankruptcy Halts the Wage Garnishment Process
For employees who are facing wage garnishment and other debt recovery means who do not otherwise have the money to repay those debts, bankruptcy may be a smart choice. Working with bankruptcy lawyers, employees facing garnishments may be able to get what is known as an automatic stay. This prevents garnishments from being taken during the process of their bankruptcy case.
A Successful Bankruptcy Means No More Garnishments
The goal for most people in bankruptcy is to reorganize or get rid of their debt. In the case of a successful chapter 7 bankruptcy, most debts that would allow for wage garnishment – such as credit card debt – can be discharged. This means that creditors are no longer entitled to pursue debt recovery through garnishment.
If you are not sure what your role in your employee’s bankruptcy or wage garnishment case is, contact a Phoenix, AZ wage garnishment lawyer at the Law Office of Larry Karandreas. The experience of an industry professional can help you and your employee navigate an otherwise confusing process – and stay in compliance with every part of the law.