Filing for bankruptcy can be a complicated process. If you’ve recently gone through this process, you might be wondering whether creditors can continue their efforts to collect the debt that led to your bankruptcy filing. In New Jersey, once a debtor has successfully completed the bankruptcy process and received a discharge, creditors are generally prohibited from attempting to collect any debts that were included in the bankruptcy filing. The discharge is a legal order that releases the debtor from personal liability for certain debts, preventing creditors from pursuing further collection actions. This protection ensures that debtors can have a fresh financial start without the constant threat of creditor harassment or collection attempts for discharged debts. If you need help with your bankruptcy case, seek assistance from our experienced New Jersey bankruptcy attorneys at Young, Marr, Mallis & Associates by dialing (609) 755-3115. Debt Collection After Filing for Bankruptcy in New Jersey In New Jersey, as in most states, the automatic stay goes into effect as soon as you file for bankruptcy. This automatic stay is a powerful legal injunction that prohibits creditors from taking any action to collect debts from you. This means that creditors cannot initiate or continue any collection activities, including phone calls, letters, lawsuits, wage garnishments, or repossessions. The automatic stay is put in place to give you breathing room and protection from creditor harassment while your bankruptcy case is being resolved. After your bankruptcy case has been successfully completed and a discharge has been granted, most of your eligible debts will be wiped out. This means that you are no longer legally obligated to repay those debts, and creditors are prohibited from attempting to collect them. The discharge is a court order that prevents creditors from pursuing any further collection actions on the debts that were included in your bankruptcy filing. It’s important to note that certain types of debts, such as student loans, child support, and certain tax debts, may not be dischargeable in bankruptcy. However, it’s crucial to be aware that not all debts are automatically dischargeable, and some creditors might challenge whether certain debts are dischargeable in your bankruptcy case. For instance, if a creditor believes that you incurred a debt through fraudulent activity or willful misconduct, they might file an adversary proceeding to have that debt declared as non-dischargeable. In such cases, the court will evaluate the creditor’s claims and make a determination. If you find yourself in a situation where a creditor is attempting to collect a debt that should have been discharged through bankruptcy, it’s important to act quickly. You can inform the creditor about your bankruptcy discharge and provide them with the necessary documentation to support your claim. If the creditor continues its collection efforts, then you may need to involve our Marlton, NJ bankruptcy lawyers to address the issue legally. Rules for Debt Collection Practices in New Jersey Debt collection practices in New Jersey are governed by both state and federal laws. These laws exist to ensure fair and ethical treatment of individuals by debt collectors. Accordingly, understanding the rules that pertain to debt collection is important for both debtors and creditors. Fair Debt Collection Practices Act (FDCPA) Protections The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets guidelines for how debt collectors can interact with debtors. It prohibits abusive, deceptive, and unfair practices in debt collection. Under the FDCPA, debt collectors are restricted from using tactics such as harassment, false statements, and unfair practices to collect debts. They are also required to provide accurate and clear information about the debt and the debtor’s rights. State-Level Regulations In addition to federal laws, New Jersey has its own set of regulations known as the New Jersey Fair Debt Collection Practices Act (NJFDCPA). This state law mirrors many provisions of the FDCPA but also includes some additional protections. For instance, the NJFDCPA extends the definition of “debt” to cover consumer leases and transactions involving money, property, insurance, and services. It also imposes specific requirements on debt collectors, such as providing validation notices within five days of initial communication and disclosing the debtor’s right to dispute the debt. Limitations on Collection Actions New Jersey law sets a statute of limitations on debt collection actions. For most debts, including credit card debts and personal loans, the statute of limitations is six years. This means that creditors cannot file a lawsuit to collect a debt after the six-year period has expired. However, it’s important to note that making a payment or acknowledging the debt could potentially restart the clock on the statute of limitations. Other Prohibited Practices Debt collectors in New Jersey are prohibited from engaging in various practices that could harm or mislead debtors. These include using profane or obscene language, making excessive and harassing phone calls, making false representations about the debt or the consequences of not paying, and threatening legal action that they do not intend to take. Debtors have the right to request verification of the debt, dispute the debt, and request that the debt collector cease communication. Taking Action Against Improper Collection Practices in New Jersey Improper collection practices have serious consequences for debtors. These practices, like aggressive communication and threats, make debtors anxious and stressed. Debtors who are subject to these practices might unnecessarily spend money out of fear. Further, they could face unfair legal problems. If you believe that a creditor or debt collector has violated your rights by engaging in improper collection practices, it’s essential to take action immediately. Start by documenting the details of the communication, including dates, times, and the content of conversations. Afterwards, you should get in touch with the team at our firm. We can help send a written dispute letter to the creditor, outlining the violations and demanding resolution. If the issue persists, we can provide valuable guidance on how to proceed and protect your rights effectively. Contact Our New Jersey Bankruptcy Lawyers Today for Help with Your Case Get assistance from our experienced Cherry Hill, NJ bankruptcy attorneys by calling Young, Marr, Mallis & Associates at (609) 755-3115.

If you are in debt, the last thing you probably want is creditors breathing down your neck, constantly asking when they are going to get paid. You know that you owe them, and they know that you owe them. Chances are, you are working diligently to pay off your debts but are running into problems that may be outside of your control. Having frustrated creditors breathing down your neck about payments when you are trying your best to get them in on time can be very distressing to debtors trying to remedy their situation. The quickest way to stop creditor harassment is to pay off your debts. Of course, that may not be an option for many people in debt. You can also try and privately work out a solution with your creditors. If that does not work, filing for bankruptcy will prevent creditors from harassing you about paying them. Start fighting back against creditor harassment by calling our New Jersey bankruptcy lawyers with Young, Marr, Mallis & Associates at (609) 755-3115 and getting a free case analysis. Why Does Creditor Harassment Happen in New Jersey Creditors more or less want one thing and one thing only – to get paid. When creditors are not paid, they can get anxious, agitated, angry, or all three. This can cause them to do things like make collect calls, contact your employer, or, in extreme cases, confront you in person. Creditor harassment happens when creditors take trying to get their debtors to pay them too far. There are rules creditors must follow that are meant to prevent them from harassing debtors. For example, creditors cannot call you before 8:00 AM or after 9:00 PM. Additionally, creditors can no longer contact you at work, through emails or texts, or on social media if you directly ask them to stop doing so. There are also certain things creditors are not allowed to do when trying to contact you about debts. Creditors cannot threaten you or swear, and they cannot contact you more than seven times in a seven-day period. If you speak with them directly on the phone, they cannot contact you for another seven days. Additionally, creditors cannot lie to you. For example, creditors cannot pretend to be a government entity or a lawyer. Options to Stop Creditor Harassment in New Jersey There are several options available to you to stop creditors from harassing you in New Jersey. Depending on your situation, some options may be more viable than others. When you meet with our Mount Holly, NJ bankruptcy lawyers, we can go over your situation and figure out the best course of action to stop creditors from harassing you. Pay Debts The most straightforward way on paper to get creditors to stop harassing you is to pay the debts you owe them. However, real-life circumstances can make this option very difficult. If your finances are already strained, this option may be off the table entirely. Moreover, a creditor who is already harassing you may not stop once you pay their debts, even if they have no reason to continue talking to you. Contact Creditor You can also get in touch with the creditor directly to try and remedy the situation. Creditors are allowed to modify their agreements with private persons, and you may be able to come up with a solution that works for both parties. If you wish to pursue this option, it is advisable to have legal counsel that can stand up to creditors if they try to set unfair terms. Go to Court If a creditor’s behavior is especially bad, you can sue them in court. If a creditor threatens you, says they will sue you when they have nothing to sue for or tries to charge you for more than what they are owed, you are well within your right to bring a civil action against them for harassing you. File Bankruptcy Filing for bankruptcy will instantly stop creditors from harassing you about your debts. Bankruptcy has a stigma attached to it that is unfairly earned. Often, when people think of “bankruptcy,” images are conjured up of families being left totally destitute and bereft of funds or someone’s business that was their life’s work being stripped for parts. The reality is very far from this grim picture. Bankruptcy is designed to pay off a creditor’s debts and make sure that the debtor comes out of proceedings. In fact, bankruptcy is designed in part specifically to stop creditors from simply taking everything you own. Once bankruptcy proceedings are finished, you essentially have a clean slate free of debts or monetary obligations, and you can move on with your life. The Best Way to Stop Creditors from Harassing You in New Jersey The best and most surefire way to stop creditors from harassing you about your debts is to file for bankruptcy. Bankruptcy is designed specifically to relieve debtors from the stress of paying off large debts as well as make sure creditors get paid what they are owed. When you file for bankruptcy under any chapter, something called an “automatic stay” is put in place. An automatic stay is a court order that stops creditors from harassing you about debts in any way whatsoever. This means that creditors cannot confront you, show up at your doorstep or place of business, or even make collect calls to ask about your debts. If creditors persist in this behavior in spite of an automatic stay, you can sue them in court for violating a court order. Should you be successful, they will have to pay you damages. Discuss Your Situation with our New Jersey Bankruptcy Lawyers Today If you are dealing with creditor harassment and need help, call our Cherry Hill, NJ bankruptcy Lawyers from Young, Marr, Mallis & Associates at (609) 755-3115 for a free case review.

 Here's What Happens When Your Small Business Files for Bankruptcy  by Motley Fool. The article can be found at https://www.fool.com/the-ascent/small-business/articles/heres-what-happens-when-your-small-business-files-for-bankruptcy/Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Having student loan debt can cause people considerable financial hardship. Depending on your finances, you might be able to file for bankruptcy to discharge your student loans in Pennsylvania. In order to get student loans discharged in bankruptcy, borrowers must file undue hardship claims. This type of claim requires borrowers to prove that their student loans are causing them undue hardship, and that certain circumstances outside their control prevent them from repaying their lenders. Getting student loans discharged in bankruptcy is challenging. Do not be discouraged if you cannot prove your undue hardship claim. Bankruptcy can still help you settle your student loan debt by consolidating all of your debts under the same low-interest rate. Bankruptcy will also erase dischargeable debts, allowing you to focus on repaying your student loans in Pennsylvania. To schedule a free case assessment from our Pennsylvania bankruptcy lawyers, call Young, Marr, Mallis & Associates now at (215) 701-6519. Can Your Student Loans Be Discharged if You File for Bankruptcy in Pennsylvania? Although student loans are unsecured non-priority debts, meaning the law does not see them as urgent debts that must be repaid immediately under bankruptcy, they are not always dischargeable. You must prove undue hardship when you file for bankruptcy to erase your student loans in Pennsylvania. Student loans are exceedingly common and leave many young people in debt the moment they graduate college. While filing for bankruptcy can help you eliminate dischargeable debts, like credit card and medical debt, it is not so easy with student loans. You must prove undue hardship to discharge your student loan debt with bankruptcy in Pennsylvania. To do this, our Pennsylvania bankruptcy lawyers may aim to prove that paying your student loans will put you below the minimum standard of living and in a place of poverty. Undue hardship can also pertain to instances where borrowers have special circumstances that make paying their student loans nearly impossible, such as having a disability that makes them unable to work. For example, if you receive Supplemental Security Income or Social Security Disability Insurance benefits in Pennsylvania, those payments alone may not be sufficient to repay your student loans and could leave you impoverished. If you demonstrated good faith in that you attempted to repay your student loans and remained in communication with your student loan holder to negotiate repayment plans, that might work in your favor when seeking to discharge your student loans via bankruptcy. The court may use the totality of the circumstances test when assessing whether or not your student loans can be discharged. This will involve evaluating all of the reasons why you may not be able to repay your student loans, such as having many dependents and living below the poverty line. Still, getting student loans discharged in bankruptcy is never guaranteed in Pennsylvania. The success of your undue hardship claim may vary, depending on the size of your student loans, your current financial situation, and whether you have private or federal student loans. How Can Filing for Bankruptcy Help You Repay Your Student Loans in Pennsylvania? If you cannot prove your undue hardship claim and the court decides your student loans will not be discharged, filing for bankruptcy can still help you repay your lender and make payments more manageable. For example, entering bankruptcy will allow you to consolidate your debt under one low-interest rate, discharge other debts so you can focus on repaying your student loans, and provide you with an automatic stay so that you can arrange your finances in preparation for repayment. Debt Consolidation When you enter bankruptcy, your debts can be consolidated. Any non-dischargeable debts, including any student loans you may have, will be consolidated under the same low-interest rate. If high-interest rates were previously attached to your student loans, they will be lowered, meaning less interest will accrue on your debts as you repay them. During bankruptcy, you might enter mediation with student loan lenders, where we can negotiate lesser payments on your behalf. Then, our attorneys will draft a repayment plan and submit it for court approval. If the repayment plan is approved, you can begin repaying your student loans over a pre-determined period of time without them growing too much. This can allow you to get a handle on your student loans. Chapter 13 bankruptcies require repayment plans. Such repayment plans take between three and five years to complete. Suppose you file for Chapter 7 bankruptcy in Pennsylvania. In that case, certain assets of yours will be liquidated to satisfy your student loans and any other non-dischargeable debts you may have in Pennsylvania. Discharge of Other Debts Student loan borrowers might have other debts, like credit card and medical debt, that impede their ability to repay their student loans. When you file for bankruptcy in Pennsylvania, debts eligible for discharge will be erased. If you file Chapter 7, they will be erased immediately. If you file Chapter 13, they will be erased once your repayment plan is complete. Getting eligible debts discharged can allow you to focus solely on repaying your student loans. This can give you the financial relief you need to restructure your finances to satisfy your debt to lenders. Automatic Stay Filing for bankruptcy results in an automatic stay. Student loan lenders cannot contact you about making payments when this happens. This will allow you time to assess your finances and make a plan moving forward. Automatic stays are available to most bankruptcy filers in Pennsylvania. If you have filed for bankruptcy in the recent past, you might have to petition the court to get an automatic stay on your student loan payments in Pennsylvania. Call Our Pennsylvania Lawyers About Your Bankruptcy Claim Now You can call (215) 701-6519 to get a free case evaluation from the Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Associates.

 What happens to your Student Loans if you file bankruptcy? See the article at Marca.com, it can be found athttps://www.marca.com/en/lifestyle/us-news/personal-finance/2023/08/12/64d7a919e2704ea0378b4598.htmlJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

Going through bankruptcy proceedings can be incredibly stressful. Although lawyers may be doing much of the legwork when interacting with the court, there is still a great deal of pressure put on couples where one or both spouses are in the middle of bankruptcy proceedings. When there are tense, stressful situations, couples may consider separating or filing for divorce to try and escape these circumstances and put the situation behind them. It is not out of the ordinary for one member of a couple to file for divorce after going through bankruptcy. Bankruptcy proceedings can put a great deal of stress and frustration on a couple, which creates an unpleasant situation for everyone involved. Many individuals may consider their spouse being saddled with significant debt as a reason to consider divorce, even if their spouse is working to clear their debts and start anew. If you are considering filing for bankruptcy or having trouble dealing with bankruptcy proceedings, our bankruptcy lawyers from Young, Marr, Mallis & Associates can help when you call (609) 755-3115 for New Jersey or (215) 701-6519 for Pennsylvania. Bankruptcy and Divorce Statistics A recent study found that 54% of people think that a spouse being in debt is a reason to think about getting a divorce. This could be for many reasons. Not only will financial stress affect one spouse, but the spouse who is not in debt may also be affected. This can be especially true if one spouse has not been upfront about how they have been managing their finances or if a spouse is making significant life sacrifices to support their partner who is in debt. Filing for divorce can be seen as a way out of a bad financial situation that is perceived to be holding someone back. Problems When Bankruptcy and Divorce Happen at the Same Time If a couple files for divorce during bankruptcy proceedings, it can lead to significant problems that will impact both legal proceedings. When a couple files for bankruptcy, their assets get put into something called a “bankruptcy trust.” A bankruptcy trust keeps track of all of the assets of a debtor that can be sold off to pay their debts. In divorce proceedings, a couple’s assets are divided between the two spouses. If those assets are in a bankruptcy trust, a court cannot divide them because they stay with the trust until they are sold off or all debts are paid. Ultimately, this means that divorce proceedings cannot go forward or finish until bankruptcy proceedings are done. So, if you file for divorce while bankruptcy proceedings have not finished, the divorce cannot be finished until bankruptcy proceedings are complete. Similarly, if you file for bankruptcy during divorce proceedings, the divorce proceedings will be put on hold. Thus, it is better to complete bankruptcy proceedings before filing for divorce or wait until a divorce is complete to file for bankruptcy. Can Bankruptcy Help Avoid Divorce? All of the negativity surrounding financial problems putting stress on a relationship can make it seem like bankruptcy is a surefire way to get a divorce. However, in many circumstances, working with a bankruptcy lawyer to file for bankruptcy can ease financial stress and potentially avoid the looming specter of a divorce. Debtors who go through bankruptcy proceedings get a clean slate afterward with no debts. This can significantly ease the burden placed on couples dealing with financial issues. Immediate Relief after Filing for Bankruptcy One of the lesser-known benefits of filing for bankruptcy is that all efforts to collect debt must immediately cease after you file. This is called an “automatic stay.” Essentially, automatic stays are court orders that prevent creditors from trying to collect your debts in any way. They cannot even call to ask you about your debts. Filing for bankruptcy can provide immediate relief to a couple dealing with the stress of looming debt. Collectors will no longer email them or call their home or place of business. This could help to alleviate anxiety a couple is facing about debt. Additionally, bankruptcy puts in place a plan to pay off debts. Having a plan can take away uncertainty and make financial issues less serious. Chapter 7 vs. Chapter 13 Bankruptcy Chapter 7 and Chapter 13 bankruptcy are the chapters of bankruptcy most likely to assist couples facing financial problems. Which Chapter you file under will depend on your financial situation. Our lawyers can assist with figuring out which chapter of bankruptcy best suits your needs and the needs of your spouse. Chapter 7 bankruptcy is best suited for individuals or couples with few assets. This is because Chapter 7 places almost no limits on what can be “liquidated” or sold for cash to pay debts. However, one of the benefits of Chapter 7 is that it wraps up relatively quickly compared to other bankruptcy chapters. Chapter 13 bankruptcy is the most common form of bankruptcy couples file for. Chapter 13 allows you to earmark assets as “off limits” from creditors. While you can also do this under Chapter 7, the capability to do so is much more limited. Thus, couples with assets they want to hold onto generally file for Chapter 13 bankruptcy. The downside, on the other hand, is that Chapter 13 repayment plans can take quite a while to resolve themselves. This means that you and your spouse will be dealing with this form of bankruptcy for much longer than Chapter 7. It is important that you consider this option with your spouse as well as our lawyers. Our Bankruptcy Lawyers Can Offer Assistance If you are concerned about the prospect of divorce or other issues surrounding your potential bankruptcy, schedule a free case review with the bankruptcy lawyers from Young, Marr, Mallis & Associates by calling (609) 755-3115 for New Jersey or (215) 701-6519 for Pennsylvania.

If filing for bankruptcy is in your near future, you might be worried about retirement or pension accounts you have set aside for your future well-being. The good news is that many of these accounts are protected from bankruptcy. Unfortunately, creditors might still try to seize certain accounts under specific circumstances. When a person files for bankruptcy, various types of accounts meant for retirement are shielded from creditors, lenders, and courts. However, retirement accounts you might have inherited are fair game and might be seized to pay your debts. To protect your vulnerable retirement accounts and other assets, you should talk to a lawyer about how you should approach filing for bankruptcy. Cashing out accounts or savings, including those set aside for retirement, might be tempting but should be avoided until you speak with a lawyer. Certain bankruptcy chapters might allow you to retain your accounts and assets while you restructure your finances and pay back debt. If you are considering bankruptcy but want to protect your retirement accounts, call our Pennsylvania bankruptcy attorneys at (215) 701-6519 to schedule a free case review with our dedicated team at Young, Marr, Mallis & Associates. What Happens to Retirement or Pension Accounts When You File for Bankruptcy in Pennsylvania? While creditors might try to seize various assets during the bankruptcy process, your retirement accounts should be protected. According to Pennsylvania law 42 Pa.C.S. § 5124(b), retirement accounts are exempt from judgment in bankruptcy cases. This means not only are creditors not allowed to seize these accounts and assets, but courts cannot access them during judicial proceedings. The idea behind protecting retirement accounts is that these accounts are intended for the well-being of the bankruptcy petitioner. Courts are not interested in leaving petitioners with zero money to their name and possibly dependent on the state for assistance. The goal of bankruptcy is to help people bounce back from financial problems, not dig the hole deeper. On top of that, money in retirement accounts is often inaccessible to account holders. You usually cannot usually withdraw money from retirement accounts without incurring costly fees. Since even the account holders themselves often cannot access this money until they retire, creditors should not be able to do so either. Recent Pennsylvania Superior Court decisions have left inherited retirement accounts more vulnerable to creditors. If you have retirement accounts that you inherited, they might be seized by creditors or liquidated by bankruptcy courts to pay your debts. In the case of Jones v. McGreevy, the court decided that inherited retirement accounts are treated differently because they are often not set aside for the account holder’s future needs. They are more akin to a windfall or even a checking account. Also, many inherited accounts must be fully withdrawn within a certain period of time, and the money must be placed elsewhere. This means not only do account holders have easier access to this money, but they might be required to pull it from these accounts. How Do I Protect My Retirement and Pension Accounts in Pennsylvania Bankruptcy Proceedings? There is a good chance your retirement accounts are already protected. Talk to a lawyer before you file for bankruptcy. Our Philadelphia bankruptcy attorneys can help you identify which of your accounts, if any, are off-limits to creditors and the courts when you file. If your accounts are protected, do not touch them. People sometimes make the mistake of cashing out retirement accounts to pay off debts to avoid bankruptcy. You do not have to do this. In many cases, people drain their retirement funds to avoid bankruptcy, but doing so only delays the inevitable. You might cash out all your retirement funds only to still end up filing for bankruptcy. It is smarter to just file for bankruptcy anyway and leave your retirement accounts untouched. If you have inherited retirement accounts, you should speak to a lawyer about how to protect them. Depending on how much money you owe, you might have other assets or property that could be used to pay back debts and satisfy creditors before they get to inherited retirement accounts. Alternatively, you might file for bankruptcy in a way that lets you pay back creditors over time, as discussed in more detail below. Filing for Bankruptcy with Retirement Accounts At Risk in Pennsylvania In order to protect retirement accounts that might be vulnerable to creditors, your attorney can help you explore Chapter 13 bankruptcy. Filing for bankruptcy is not a one-size-fits-all process. There are various chapters to consider filing under. While some chapters are intended for businesses, others are meant for individuals. Among the most commonly filed chapters are Chapters 7 and 13. Chapter 7 focuses on liquidating your assets, accounts, and properties and using the proceeds to repay creditors. Remaining debts may be discharged by the court. This might not be the way to go if you want to protect vulnerable assets like inherited retirement accounts. The bankruptcy trustee might seize assets you want to retain and liquidate them with or without your permission. Chapter 13 bankruptcy, on the other hand, does not involve the liquidation of assets. Instead, you and your attorney will devise an aggressive yet feasible payment plan to help you pay back creditors over several years. As long as you remain on the plan, your assets, including inherited retirement accounts, should not be taken. This tends to be a lengthy process, but it can be worth it for those who wish to retain their accounts and assets. Contact Our Pennsylvania Bankruptcy Lawyers to Discuss Protecting Your Retirement Accounts If you are thinking about bankruptcy but are worried about your retirement accounts, call our Allentown, PA bankruptcy lawyers at (215) 701-6519 to schedule a free case review with our dedicated team at Young, Marr, Mallis & Associates.

Discharging Student Loans in Bankruptcy.The New York Times has an article titled "Discharging Student Debt in Bankruptcy Is Supposed to Be Easier Than Before"about new processes to discharge student loans in Bankruptcy.  The article can be found athttps://www.nytimes.com/2023/08/09/your-money/student-loan-bankruptcy-discharge.html?smid=nytcore-android-shareJim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

What Is a Non-Earnings Garnishment? While nobody sets out wanting a garnishment, they’re entirely uncommon due to child support and other sources of debt. Garnishments are used by creditors to collect payment for unpaid debts, either through earnings or non-earnings. Most people associate garnishments with earnings garnishments, otherwise known as wage garnishments. However, non-earnings can be garnished as well, and it can be just as financially devastating. The good news is that if you are facing any type of garnishment, filing for bankruptcy may be able to help your situation. Review your case for free with one of our experienced Mesa bankruptcy lawyers by clicking here or calling 480-470-1504.  Earnings vs. Non-Earnings Garnishments In a garnishment context, earnings are “compensation payable for work performed by the judgment debtor and not yet paid by the employer.” Regular wages count as earnings, as do bonuses, commissions, pensions, and retirement contributions. Non-earnings are “personal property belonging to a judgment debtor but held by a third party, or money other than ‘earnings’ that is owed to the debtor by a third party.” Examples include the contents of a bank account or safe deposit box, tax refunds, unpaid rent, and more. The processes for garnishing earnings and non-earnings are slightly different.  Before proceeding with either type of garnishment, a creditor must receive a money judgment against the debtor. The judgment creditor, or the plaintiff, is the one seeking repayment from the judgment debtor, or the defendant. However, there can also be a garnishee, or a third party holding money or property belonging to a judgment debtor. Once the creditor receives a money judgment, the court doesn’t begin enforcing repayment automatically. There are multiple options that a creditor has to do with a money judgment, but garnishments are one of the more popular choices.  A judgment creditor will need to have the debtor’s address and the name of their employer or the holder of their assets to proceed with a garnishment. The money or property must be located within Arizona for the judgment creditor to proceed with garnishment through the Arizona court system. The judgment creditor should make sure all of their documents are accurate, as mistakes could mean being held liable for the debtor’s legal fees related to the garnishment.  Once a creditor has obtained a writ of garnishment against the debtor, it will be served on the debtor’s employer. Depending on when the notice is served to that workplace’s pay periods, the garnishment may be taken out of the debtor’s next check or the subsequent paycheck. Although the balance can be increased due to interest and legal fees, only one creditor can garnish a debtor’s paycheck at a time. If more than one creditor obtains writs of garnishments against the debtor, it will be first come, first served depending on who serves the employer first. Any subsequent creditors will need to wait until the first garnishment is fulfilled before theirs can begin. An employer may not legally terminate an employee due to service of a writ of garnishment or for having their wages garnished. However, an employer can terminate an employee for receiving a second writ of garnishment in 12 months.  Common Examples Of Non-Earnings Garnishments Wage garnishments can be stressful, embarrassing, and most of all, financially draining, but non-earnings garnishments can make a financial situation worse as well. Some common examples of non-earnings garnishment situations include: A bank account levy: You may have several accounts through the same financial institution, such as a checking account, savings account, and maybe an attached credit card too. If you incur a debt on any of those, your bank might use a levy on one of your other accounts to collect the funds.  Safe deposit box: Similarly, you may hold items in a safe deposit box at a bank. If you fall behind on one of your accounts with that bank, they might pursue your safe deposit box for compensation.  Tax refunds: Many creditors, including the IRS, might file a non-earnings garnishment to intercept your tax refund to pay a debt.  Lottery winnings: Similarly to tax refunds, a creditor may file a non-earnings garnishment to intercept a payment such as lottery winnings.  Property Exempt From Non-Earnings Garnishment Creditors are somewhat limited in the types of funds and assets they can garnish from a debtor to collect upon a debt. Form 8, which is a Request for a Hearing on Garnishment (Non-Earnings), allows a debtor to indicate if the funds or property the creditor is seeking to garnish is exempt from garnishment. Some funds in bank accounts are statutorily protected in Arizona. Temporary assistance, social security income, veterans affairs benefits, and similar funds can’t be garnished from a bank account through a non-earnings garnishment. Pension, retirement benefits, and worker’s compensation are exempt from non-earnings garnishments. Additionally, certain household goods, furnishings, and appliances, equity in a motor vehicle, personal items, and tools or equipment of trade are exempt from non-earnings garnishment. However, being exempt from non-earnings garnishment isn’t the same as being protected from repossession. For more questions on property exempt from non-earnings garnishment, call our Phoenix bankruptcy lawyers for your free consultation at 480-470-1504.  What Is The Automatic Stay? Automatic Stay is a legal protection that becomes effective when a debtor declares bankruptcy. In most bankruptcy cases, the automatic stay lasts from filing until discharge or dismissal. The automatic stay is a powerful tool in defending against creditors. The automatic stay stops several types of creditor collections, like lawsuits, repossessions, foreclosures, utility shut-offs, and more. Most relevant here, the automatic stay contains most types of wage garnishments. A creditor also can’t proceed with a non-earnings garnishment when the automatic stay is in effect.  Most wage garnishments stop when a debtor files their bankruptcy petition in court. If the case is successful, the debt associated with the garnishment may be discharged. If the debt behind the garnishment is cleared by bankruptcy, the creditor has no legal right to resume garnishing the debtor’s paychecks after the bankruptcy case is discharged. Some debts, like student loans, won’t be removed by filing for bankruptcy. Here, the garnishment will pause during the bankruptcy but resume after discharge or dismissal. Many parents have wage garnishments to pay child support. A child support wage garnishment doesn’t stop a Chapter 7 bankruptcy filing. A child support wage garnishment only stops if a debtor files a Chapter 13 bankruptcy that will fully pay off their child support arrearages. For more information about the automatic stay, call our firm for your free bankruptcy consultation at 480-470-1504 or click here.  Our Mesa Bankruptcy Team Can Help You Protect Yourself From Garnishment Bankruptcy can help protect your funds and assets from earnings and non-earnings garnishments. Depending on your situation, you may have ample time to prepare your filing, or you may need to get it done quickly. Regardless, My AZ Lawyers can guide you through bankruptcy so you come out on the other side with all of your assets and little to no debt. If you qualify, we can file your case for as little as zero dollars down. Get the process started by scheduling your free consultation- contact us through our online form or call 480-470-1504.   Arizona Offices: Mesa Location: 1731 West Baseline Rd., Suite #100 Mesa, AZ 85202 Office: (480) 448-9800 Email: info@myazlawyers.com Website: https://myazlawyers.com/ Phoenix Location: 343 West Roosevelt, Suite #100 Phoenix, AZ 85003 Office: (602) 609-7000 Glendale Location: 20325 N 51st Avenue Suite #134, Building 5 Glendale, AZ 85308 Office: (602) 509-0955 Tucson Location: 2 East Congress St., Suite #900-6A Tucson, AZ 85701 Office: (520) 441-1450 Avondale Location: 12725 W. Indian School Rd., Ste E, #101 Avondale, AZ 85392 Office: (623) 469-6603 The post What Is a Non-Earnings Garnishment? appeared first on My AZ Lawyers.

The New York Times has reported that WeWork, the co-working company, has declared that "its ability to endure as a business is in doubt. The article can be found at https://www.nytimes.com/2023/08/09/business/wework-explain.htmlThis suggests that WeWork might be considering filing for bankruptcy. In this case, the company would either attempt to reorganize or liquidate. Under section 365 of the Bankruptcy Code, WeWork has the right to reject its office leases, and commercial landlords should prepare for this possibility.Jim Shenwick, Esq., possesses significant experience in real estate leasing and bankruptcy law. Landlords or creditors who have questions about WeWork's bankruptcy filing should get in touch with Jim Shenwick, Esq.Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me.https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!