Maryland Bankruptcy Law: How to Handle Wage Garnishment

Wage garnishment is a legal procedure where a court orders an employer to withhold a portion of an employee's earnings to pay off debts. For many Maryland residents, facing wage garnishment can be overwhelming. However, understanding Maryland bankruptcy law can provide critical insights into how to manage this situation effectively.

Under Maryland law, wage garnishment can occur due to various debts, including credit card debts, medical bills, and personal loans. If you find yourself in a situation where your wages are being garnished, it’s important to explore your options under Maryland bankruptcy law, which may allow you to regain control over your financial situation.

One solution is filing for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 bankruptcy can eliminate most unsecured debts, and as a result, any garnishments on these debts may cease. On the other hand, Chapter 13 allows you to create a repayment plan to address your debts over three to five years, potentially stopping further wage garnishments during the repayment period.

When you file for bankruptcy, an automatic stay is triggered. This stay prohibits creditors from taking any further collection actions, including wage garnishment. It’s essential to notify your employer about the bankruptcy filing, so they can cease any garnishments that are currently being executed.

In Maryland, the law limits how much of your wages can be garnished. Generally, creditors can garnish up to 25% of your disposable earnings or the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage, whichever is less. Understanding these limits can help you assess how much income you can keep during the garnishment process.

Additionally, if you believe your wages are being garnished improperly or if you are facing financial hardships, you can challenge the garnishment in court. This option allows you to contest the validity or amount of the garnishment, and it may provide temporary relief.

If you are currently experiencing wage garnishment and are considering bankruptcy as an option, it’s highly advisable to consult with a bankruptcy attorney. An experienced attorney can help you navigate the complex legal landscape, explain the implications of filing for bankruptcy, and help you understand how to protect your rights and financial future.

In summary, Maryland bankruptcy law provides various avenues for handling wage garnishment. Filing for bankruptcy and understanding the limitations on garnishment can empower individuals to take back control of their finances. If you find yourself in this challenging situation, don't hesitate to seek professional legal advice to guide you through the process.