By filing for bankruptcy, you may be able to stop the garnishment. Better yet, there is a chance you could recover some of the money that has been garnished.
The automatic stay is your best friend when filing for bankruptcy. Once this takes effect, most collection efforts are required to stop. This includes wage garnishments. As long as the bankruptcy is active, creditors are unable to garnish your wages.
If a creditor wants to continue, they will need to request that the court lifts the stay.
Note: the automatic stay has no effect on child support and alimony obligations. If your wages are being garnished for this type of obligation, bankruptcy will not change anything.
What Happens Following Bankruptcy?
You know that wage garnishment is likely to stop during the bankruptcy process. What you may not understand is what happens after the process comes to an end.
If you receive a discharge through bankruptcy and your obligation is included, the creditor is unable to resume with the garnishment. If your case is dismissed with no discharge, the creditor has the right to continue with the garnishment into the future.
Tip: to ensure that your garnishments are stopped shortly after filing for bankruptcy, be sure to list all creditors in your paperwork. Along with this, don’t be shy about sharing your bankruptcy with your employer’s payroll department. This way they know what to expect in the near future.
Generally speaking, bankruptcy will stop wage garnishments, even if only for the meantime. Your goal is simple: to make changes that put an end to this once and for all.
If you have questions about wage garnishment and bankruptcy, don’t hesitate to contact us. We can help you better understand your situation and how to avoid garnishments in the future.