Will declaring bankruptcy prevent my wages from being garnished for outstanding debts?

A wage garnishment is a legal proceeding in which a judge orders your employer to withdraw a specific amount of money from your check each month to pay towards a debt you owe. This often occurs after the lender has petitioned the court to allow it, in an effort to collect a debt. One of the best ways to stop wage garnishments is to file bankruptcy.

How Bankruptcy Help

Once you file bankruptcy, you are able to stop all legal proceedings against you. This includes any currently in place judgments as well as impending judgment. Wage garnishments falls into this category. The bankruptcy puts a halt to all legal claims against you through an automatic stay. In most cases, this is a temporary fix.

• The automatic stay may be lifted if the bankruptcy trustee determines the debt is outside of the realm of the bankruptcy case.
• If a credit card or other unsecured lender has filed such as garnishment against you, and the debt is included in the bankruptcy, it is likely the garnishment will be dismissed as long as the bankruptcy is discharged.
• If the garnishment is due to a service you need, such as your utility bills, the bankruptcy does not discharge those debts unless you plan not to use them anymore. To remain within a contract, you must become current.

In many situations, bankruptcy is the route to take to stop wage garnishments. However, every case is different. Discuss your case with your attorney before you move forward in filing bankruptcy or before the wage garnishments go into place.