Debtors can now protect paychecks from debt collection - WAFF-TV: News, Weather and Sports for Huntsville, AL

Debtors can now protect paychecks from debt collection

(Source: WAFF Staff) (Source: WAFF Staff)
HUNTSVILLE, AL (WAFF) -

It's a situation many people find themselves in.

Imagine if you were living paycheck-to-paycheck with less than $1,000 in the bank at all times.

Now add debt collectors calling and even suing you, trying to take 25 percent of your paycheck.

Thanks to a recent legal victory, if you're in that situation, you have legal protection.

New guidelines say that a person making less than $1,000 every paycheck and who has less than $1,000 in the bank can't be pursued for debt collection.

“Sometimes the first time they find out about it is when it hits their paycheck. They're not able to pay their rent for the month, not able to make a car payment, they lose their car, they might get evicted. There's a ripple effect," said Farah Majid, an attorney at Legal Services of Alabama said.

He added, "And we've seen that over the last year and a half, I've seen clients that have fallen into that ripple effect.”

Majid said this win will ensure folks with low incomes can afford necessary living expenses before debt collectors come knocking.

If you want to find out more about how to protect your paycheck, contact Legal Services of Alabama

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