Wage Garnishments: When Bankruptcy Can Help and When It Cannot
Anyone struggling to pay their bills will struggle even more if their wages are garnished. The law allows creditors to extract money from wages after they receive a court order, regardless of the individual’s other debts. The payments can come from any earnings, including commissions, worker’s compensation, and bonuses.
Employers face penalties if they refuse to remove these payments from a paycheck or other compensation. In Kansas, employers could receive a fine of $500 or more and become liable to the creditor for legal fees and an amount three times the original debt amount.