How does a Chapter 11 bankruptcy affect my wages?

In Virginia, Chapter 11 bankruptcy affects your wages in several ways. First, your creditor may garnish your wages for payments on your debts during and after the bankruptcy. In Virginia, the availability of wage garnishment does not end when you declare bankruptcy. Your wages can be garnished in order to pay off creditors until your debt is paid in full. Second, Chapter 11 bankruptcy may also reduce or eliminate your income tax liability. In most cases, creditors will no longer be able to collect income taxes on your wages, as the debts are cancelled through the bankruptcy process. This can result in a significant decrease in your tax burden. Finally, Chapter 11 bankruptcy can affect your wages by impacting your credit score. When you file for bankruptcy, it will stay on your credit report for up to ten years. During that time, your credit score may suffer, which can make it harder to get approved for loans and other forms of credit. This can mean that you will face higher interest rates on loans and credit cards, which can affect the amount of money you can take home in wages each month. Overall, declaring bankruptcy can have an effect on your wages in several ways. If you are considering filing for Chapter 11 bankruptcy in Virginia, it is important to carefully consider the potential impact on your wages before you make a decision.

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How does a Chapter 11 bankruptcy affect my wages?

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