Use Chapter 7 Bankruptcy to Stop Wage Garnishment

  • David M. Offen,
  •   Chapter 7 Bankruptcy
  •   Comments Off on Use Chapter 7 Bankruptcy to Stop Wage Garnishment

wage garnishmentAre your wages being garnished? Do you fear this could happen in the near future? If you answered yes to either question, it is important to understand your options for overcoming this problem.

Filing for Chapter 7 bankruptcy will stop wage garnishment. As a result, you will feel better about your current situation.

The automatic stay prohibits creditors from collecting during your bankruptcy case. For this reason, as long as your case is open, you are safe from garnishment.

The Role of your Employer

Don’t blame your employer if your wages are being garnished. This has nothing to do with them, and in most cases their hands are tied in terms of what they are able to do.

When you file for bankruptcy, you will provide the court with a list of all creditors (including contact information). At that point, the court will contact each creditor to notify them that you filed for bankruptcy.

From there, the creditor is required by law to stop garnishing your wages. This won’t last forever, but it will work in your favor for the time being.

What Now?

If you decide to file for bankruptcy, the automatic stay will suspend wage garnishment for the time being. Once your case ends, however, the automatic stay goes along with it.

Many people believe this will once again lead to wage garnishment, however, there is something to remember: your bankruptcy may have discharged the debt that led to the garnishment. In this case, the creditor won’t have anything to collect, making garnishment unnecessary.

As you can see, using Chapter 7 bankruptcy to stop wage garnishment is a strategy to consider. If you have any questions about this, including how to get started, don’t hesitate to contact us.

We can explain the finer details of Chapter 7 bankruptcy, wage garnishment, and what to expect. This may be the best way to stop garnishment, thus leading to a “full” paycheck.

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