How does a Chapter 11 bankruptcy affect my wages?

When you file for a Chapter 11 bankruptcy in Utah, your wages will be affected in two significant ways. First, if you are a debtor, you must pay all of your bankruptcy fees and debts owed to creditors with your wages as they come in. This money is known as disposable income. You must also report any wage increases during the bankruptcy process to the court. Second, your wages may be garnished if you are required to make full payments to credit card companies or other creditors through a "wage garnishment" order. This order requires your employer to withhold a certain percent of your wages on a periodic basis and route them to the creditor as payments. The court may also impose a credit limit on you for the duration of the bankruptcy process, which will limit how much money you can borrow to cover your expenses. Overall, a Chapter 11 bankruptcy can have a major impact on your wages. It is important that you understand and work to properly manage your finances so that you are not left with more debt than you can handle. It is also important to contact an experienced bankruptcy attorney to help ensure your rights are protected during the bankruptcy process.

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How does a Chapter 11 bankruptcy affect my wages?

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