Wage garnishment is a legal action that permits a creditor to have the sheriff or marshal contact your employer and order them to hold a certain percentage of your wages and send it to them. It can have a significant effect on your quality of life and ability to pay for fixed expenses, even though there are limits on how much can be held back. If you are struggling to make ends meet as a result of a wage garnishment imposed by a credit card company or other creditor, filing for bankruptcy is an effective way to have a wage garnishment stop.

There are some types of wage garnishment that cannot be voided by a bankruptcy filing. The most notable of these is child support, though it is also true for the payment of taxes and student loans. But if your wages are being garnished following a legal filing by a creditor, then the automatic stay that is part and parcel of a bankruptcy filing will not only stop debt collectors from calling but will also stop wage garnishment.

Most people who are in debt have found themselves in this untenable position for reasons that are out of their control: they may have suffered a traumatic injury that kept them from work, or an illness that left them with enormous hospital bills. They file for bankruptcy because they have been pushed to the brink by relentless calls from debt collectors and the mounting piles of bills. Many of them have already gone through the headache of fighting with a creditor and having their wages garnished, so the elimination of that reduction in their pay makes the process even more appealing.

As referenced earlier, there are some types of wage garnishment that cannot be stopped. In addition to those set up for the repayment of a student loan or tax debt, or to pay required child support, people who have previously filed for Chapter 7 bankruptcy will only see limited relief from wage garnishment, and if this is your third filing you will not be eligible for an automatic stay. The automatic stay lasts for a much shorter period for a second filing, and as soon as it is over any debt that was not discharged in the bankruptcy can be subject to wage garnishment again. That being said, in most cases a bankruptcy filing will discharge all of those debts.

If you are having a hard time making ends meet as a result of a wage garnishment and you need to talk to a bankruptcy expert, we are here to help. Contact us today to set up an appointment to come in for a consultation.

 

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