Can Bankruptcy Prevent or Stop Wage Garnishment?

Have collectors threatened you with wage garnishment? Or maybe they’ve already started taking some of your earnings? If you do not pay your bills, a creditor can take you to court (sue you). Once you’ve been sued, you must answer, and defend the lawsuit or the creditor will win by default. Once the creditor has a judgment, it can garnish your wages. This can have a devastating effect on your life, your financial situation, and your reputation. (It’s impossible to keep wage garnishment a secret from your employer.)

Did you know that wage garnishment is immediately stopped when you file for bankruptcy? When you file a bankruptcy petition, you are immediately put under the protection of an automatic stay. This means that all collection activities must stop. Violating the automatic stay would be costly to your creditors.

(A few creditors are excluded from the stay, such as those collecting child support or alimony.)

In addition to stopping garnishment, we may be able to get the last 90 days of garnishment back if you decide to file for bankruptcy. You don’t have to live with wage garnishment or under the threat of it. Act now and consider your options. The worst thing you can do is to do nothing.

Please call JC Law Group PC at 415-963-4004 or email us to discuss your individual circumstances. We are here to help!