Will filing for bankruptcy stop wage garnishments?
Wage garnishment is when a creditor obtains an order requiring your employer withhold pay from your paychecks. Typically, a creditor can garnish about 25 percent of your take-home pay, depending on the type of debt that is owed. Wage garnishments can have a major effect on your personal finances. Thankfully, there are options to stop wage garnishment.
If you have recently had your wages garnished, you may be looking at ways to stop the creditor from garnishing your wages. Filing for bankruptcy is one way to stop wage garnishments. However, this depends both on the type of debt that is the reason for the garnishment as well as the type of bankruptcy filing.
To begin, when someone files for bankruptcy, the court imposes an automatic stay. The automatic stay prohibits all creditors from taking any action to collect a debt from the filer. This includes garnishing wages.
One major consideration to keep in mind is the difference in the two common types of bankruptcies for individuals. Under a Chapter 13 bankruptcy, all garnishments can be stopped, even those for non-dischargeable debts such as spousal support obligations and child support obligations. However, once the bankruptcy is complete, the debts will not be forgiven, and the filer will need to pay them back as part of the Chapter 13 bankruptcy repayment plan.
The benefit in filing for Chapter 7 bankruptcy is that most debts can be discharged and, when a person files for bankruptcy, all garnishments based on these debts must cease. There are, however, certain types of debt – such as spousal support and child support obligations – that can neither be discharged through a Chapter 7 bankruptcy. Filing for bankruptcy will not stop wage garnishments for these debts.
If your wages are being garnished, and you want help going over your options, contact a bankruptcy lawyer for immediate assistance.
Other Frequently Asked Questions:
- Are alimony debt and payments dischargeable in bankruptcy?
- Are my student loans dischargeable in bankruptcy?
- Are tax liens dischargeable in bankruptcy?
- Can a Chapter 7 bankruptcy save my home from foreclosure?
- Can a creditor repossess my car without informing me?
- Can bankruptcy help my credit score?
- Can bankruptcy help with my income tax obligation?
- Can bankruptcy protect my workers compensation settlement funds?
- Can I discharge my old tax debt in bankruptcy?
- Can I file for social security disability while I’m still working?
- Can I keep my cellphone after I declare bankruptcy?
- Can I receive workers compensation benefits if I was injured before or after clocking out?
- Can my re-enlistment bonus be discharged in bankruptcy?
- Can student loan debt be discharged through bankruptcy?
- Can the bankruptcy trustee in my case seize the funds in my bank account?
- Chapter 13 Basics
- Chapter 7 Basics
- Does bankruptcy put people at risk for deportation?
- Get help filing your income tax returns for free!
- How can business owners avoid personal bankruptcy?
- How can I stop debt collectors from harassing me and my family?
- How do I decide if bankruptcy is necessary?
- How do I know if bankruptcy is the right choice for me?
- How does the foreclosure process work in Georgia?
- How long does a bankruptcy case take?
- How long must I live in this area before I can file bankruptcy here?
- I cosigned a debt for a friend and now he won’t pay. What can I do?
- I was fired after being hurt on the job. Can I still file for workers compensation?
- I was injured at work. Can I sue my employer?
- I was terminated from my job after a work injury. Now my condition has worsened. What are my options?
- I’m considering filing a Chapter 13 bankruptcy. Do I have to include all my debts?
- I’m starting to think I may have to file for bankruptcy. Where do I start?
- If I file bankruptcy, can I keep my cars and motorcycles?
- If My Spouse Files for Bankruptcy, Do I Need to as Well?
- Is bankruptcy better than refinancing a mortgage to pay off debt?
- Is child support arrears dischargeable in bankruptcy?
- Is there a minimum amount of debt needed to file for bankruptcy?
- Mortgage and debt relief for active military personnel
- My car has been repossessed. Can bankruptcy help me get it back?
- My Chapter 13 case was dismissed. Can I file a new case and protect my property?
- My doctor released me to light duty, but my employer is insisting I do more strenuous work. What should I do?
- My ex assumed our joint debts as part of our divorce settlement. Now he’s filed bankruptcy. What can I do?
- My house is being foreclosed – What can I do?
- My workers comp doctor has released me to light duty work. Can my employer cut off my weekly benefits?
- My workers compensation doctor says I can return to work, but I can’t do the job. What can I do?
- Ripped off by a debt settlement company?
- Social security benefits — Can a creditor garnish my bank account and seize my social security funds?
- The Trustee Has Filed a Motion to Dismiss My Chapter 13 Case. What Are My Options?
- What are the consequences of filing for bankruptcy in Georgia?
- What are the most common reasons for filing for a Chapter 7 bankruptcy?
- What can I do to improve my credit score?
- What happens to your debt after you die? Will my family have to pay my debts?
- What happens when I owe more than my car is worth?
- What is the means test in a Georgia Chapter 7 bankruptcy?
- What property is exempt in a Georgia bankruptcy?
- What should I do if a creditor demands payment after I’ve filed my case?
- What to expect: First credit counseling course
- What to expect: free bankruptcy consultation
- What to expect: Second credit counseling course
- What to expect: Your next appointment
- When is my bankruptcy case closed by the court? Is it possible to reopen the case?
- Where would my bankruptcy case be filed, and where would the hearings be held?
- Will filing for bankruptcy discharge child support or spousal support obligations?
- Will filing for bankruptcy stop wage garnishments?
- Will I have to sell my primary home, rental property or vacation home if I file for bankruptcy?
- Will paying offan old debt raise my credit score?