9/07
Will bankruptcy stop wage garnisments?
Almost without any exception, the answer is YES!
If you have been sued on a consumer debt, like a credit card or signature loan, we can usually stop the garnishment with a bankruptcy filing. Creditors have to obey the automatic stay impossed by a bankruptcy filing.
There are some limited exceptions. You can't stop a child support deduction. Bankruptcy can't be used to stop your child support payment. It might be used to stop the extra payment for back or missed support payments but you won't get rid of them in the long-run. You will typically need to file Chapter 13 in order to address back support payments owed, through a payment plan. And if the debt can't be wiped out (e.g. support or most student loans) the garnishment could resume after your case is over.
But for most people, garnishments are for old consumer debts they can't afford to pay. And the deduction is making them fall behind on more important debt, like rent or mortgage and car payments. Bankruptcy will allow you to put the order of payment right again -- to allow you to decide who gets paid and who does not.
If you have been sued on a consumer debt, like a credit card or signature loan, we can usually stop the garnishment with a bankruptcy filing. Creditors have to obey the automatic stay impossed by a bankruptcy filing.
There are some limited exceptions. You can't stop a child support deduction. Bankruptcy can't be used to stop your child support payment. It might be used to stop the extra payment for back or missed support payments but you won't get rid of them in the long-run. You will typically need to file Chapter 13 in order to address back support payments owed, through a payment plan. And if the debt can't be wiped out (e.g. support or most student loans) the garnishment could resume after your case is over.
But for most people, garnishments are for old consumer debts they can't afford to pay. And the deduction is making them fall behind on more important debt, like rent or mortgage and car payments. Bankruptcy will allow you to put the order of payment right again -- to allow you to decide who gets paid and who does not.
