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Stop Wage Garnishment Through Bankruptcy
When an individual falls behind of credit card debt, car loans, and other credit obligations, the creditor will often file a lawsuit and obtain a judgment to collect the unpaid account. After the creditor obtains a judgment, the creditor is entitled to garnished wages to collect that judgment. Often, it is the wage garnishment that causes people to seek the assistance of a bankruptcy attorney.
A Chapter 7, Chapter 11, or Chapter 13 bankruptcy case filing will immediately stop a garnishment proceeding. Upon the filing of the bankruptcy petition, the judgment creditor will no longer be able to garnish wages or attack bank account in an attempt to collect the unpaid debt. Although a garnishment creditor is limited to collecting 25% of gross wages through a garnishment proceeding, often multiple creditors will have garnishments, and they will continue garnishing the wages until the individual files bankruptcy.
The best time to consult with a bankruptcy attorney is before a judgment creditor begins garnishment proceedings. However, if your wages are being garnished, contact our office immediately so that we can schedule an appointment to discuss your options to stop the wage garnishment through a bankruptcy case filing. In many cases, we can not only stop a garnishment for occurring or continuing, but we may also be able to recoup money that has already been garnished by a creditor.
