How bad is judgment & wage garnishment

[bkbkbk]

How bad would it be to have a judgment against you, have your wages garnished, etc.? What if it was was done within a bankruptcy because a creditor objected? If it was within bk, does it show up on your credit report? If an employer or potential employer can already see a bk on your credit file, does it matter?

If you wages are garnished, how does that work? Would only someone in HR know? Would your boss be informed? Would an employer you're interviewing with know?

I've never had these problems, so it seems scary.

[lrprn]

How bad would it be to have a judgment against you, have your wages garnished, etc.?

It depends on your financial situation when it happens. Typically if judgments and garnishments are happening, the debtor's finances are in very bad shape. That means that ANY money lost is going to have a big impact on the debtor.

What if it was was done within a bankruptcy because a creditor objected? If it was within bk, does it show up on your credit report?

Judgments and garnishments from before filing stop once you file. While your bankruptcy is active, creditors cannot get judgments and garnishments - the automatic stay prevents that. The debts that cause most judgments and garnishments are wiped out in bankruptcy, so after filing most of the time there's nothing for the creditor to go to court over.

If an employer or potential employer can already see a bk on your credit file, does it matter?

If the job in question requires security clearances or handles money, then yes, a bankruptcy on your record can matter. Otherwise, it depends on the employer. Some care, some don't.

If you wages are garnished, how does that work? Would only someone in HR know? Would your boss be informed?

A quick summary....creditor goes to court, gets a judgment that allows garnishment, notifies your employer, and the garnishment starts on your next check. How much can be garnished depends on your state.

Typically in a large company, only HR knows. In a smaller company, more people may find out.

Would an employer you're interviewing with know?

If their employment form asks specifically if you've filed, if you tell them during the interview, or if they see it if they pull a credit report, then yes.

[oldbaddebts]

You don't give much detail of the situation.... Do you already have an open bk with a creditor objecting, and winning the objection? If not, the likelyhood of even getting to that point are VERY slim. Not that it doesn't happen, but the laws are slanted in your favor on that stuff.

IF a creditor has already won the objection, they can have the auto stay lifted for them and go back to collections, at which point, they would be better off going back to requesting payments, demanding money from you for a while because you know you have to pay them no matter what. Then if you don't pay they would still have to go to court and get a judgement, in which case you would be best off making a deal with them where you agree to a specific payment plan and if you default they automatically get the judgement. This is done within the court process, I believe it's called an "agreed order", but I could be mistaken. However, ONLY after a creditor winning an objection and lifting the stay, AND getting a judgement can they garnish you.

Hope that helps.