Wage Garnishments

When you file for bankruptcy, an automatic stay is put in place. This legal protection halts most collection actions, including wage garnishments. Here’s how it works:

• Immediate Relief: Once you file for bankruptcy, creditors must stop all collection activities, including garnishment. This means that any ongoing garnishments will cease, allowing you to keep more of your paycheck.
• Duration of the Stay: The automatic stay remains in effect throughout the bankruptcy process, but there are exceptions. Certain creditors may seek relief from the stay, particularly for child support or alimony obligations.

While the automatic stay provides immediate relief from garnishments, it’s essential to understand how bankruptcy impacts your debts:

• Discharge of Debts: If your unsecured debts are discharged through bankruptcy, creditors will no longer have the right to collect those debts, including garnishing your wages for those specific obligations.
• Post-Bankruptcy Garnishments: Once your bankruptcy case is resolved, if you have not discharged certain debts (like child support, alimony, student loans or tax obligations), those creditors may attempt to garnish your wages again if you do not make an agreement to resume regular payments for these certain debts listed above (You should contact the creditors above once your bankruptcy case has closed in order to make acceptable payment arrangements; they cannot contact you while your bankruptcy case is still open).

Understanding the issues of wage garnishment and bankruptcy can be complex. It’s crucial to work with an experienced bankruptcy attorney who can help you navigate your options and protect your rights. They can provide guidance on:

• The specific debts that may lead to garnishment after bankruptcy.
• Your eligibility for different types of bankruptcy.
• How to stop ongoing garnishments effectively.