How to Stop Wage Garnishment

Wage garnishment can be a very distressing event. Wage garnishment means that a creditor has gone to court and gotten a judgment against you, and you haven’t paid. The creditor can then go back to court and get an order of garnishment. When the order goes into effect, money comes directly out of your paycheck and goes to your creditor before you ever see it. If this is happening to you and you need it to stop, you should consider filing for Chapter 7 bankruptcy.

When you file for bankruptcy, something called an “automatic stay” is put into effect. This means that creditors must stop all collection activities against you. Wage garnishment is included in the automatic stay, so wage garnishment must stop upon filing for Chapter 7 bankruptcy.

Sometimes you can even get an emergency filing to stop the garnishment even more quickly. An emergency filing costs more but it might be worth it in a particular situation.

Once you’ve filed for Chapter 7, if all goes successfully, your debts will be discharged at the end of the process, so the garnishment will not start again. Remember, dischargeable debts don’t include student loans, taxes, or your mortgage if you decide to keep your house. Otherwise, wage garnishment should be in your past.

Of course, you must qualify for Chapter 7 before you can file under it. The laws changed in recent years, and you can qualify only if your income falls below the median income level in the state where you live, and if you have no disposable income to repay debts after your obligations are fulfilled. Otherwise, you will have to file for Chapter 13.

Harold Shepley & Associates is a full service debt relief law firm and can answer any questions you may have about debt and bankruptcy. Contact us today for a free consultation.

By Harold Shepley | Published May 21, 2012 | Posted in Bankruptcy, Chapter 13, Chapter 7, Credit, Debt | Tagged chapter 13, chapter 7 bankruptcy, creditor, dischargeable debts, payments, wage garnishment | Leave a comment