How does a Chapter 11 bankruptcy affect my wages?

Chapter 11 bankruptcy law in California affects wages in a few different ways. Firstly, any type of bankruptcy will affect a debtor’s credit score, which can make it difficult to get a loan or credit in the future. This also makes it more difficult to get a job, as employers may view the bankruptcy negatively. Secondly, it could lead to a garnishment of wages, meaning that creditors may take part of a debtor’s paycheck in order to repay debts. The amount that can be taken depends on the debtor’s income and other factors. Thirdly, under Chapter 11 bankruptcy law, debtors must seek court approval for any major financial decisions. This means that before a debtor can spend any money on a major purchase or take out a loan, they must get permission from the court. Finally, creditors may also attempt to challenge the debtor’s discharge or reorganization plan in court, which could also affect a debtor’s wages. If the challenge is successful, then the debtor may be required to pay back all or part of the debt. In general, filing for Chapter 11 bankruptcy in California will affect a debtor’s wages in a few different ways. It can make it difficult to access credit or employment, lead to garnishment of wages, restrict major financial decisions, and increase the risk of having to repay debt.

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How does a Chapter 11 bankruptcy affect my wages?

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