Can Filing for Chapter 13 Bankruptcy Stop a Wage Garnishment?
Filing for bankruptcy in most cases will stop your wages from being garnished. Upon submitting your bankruptcy filing, the courts will issue what is called an ‘automatic stay’ which will temporarily stop all garnishments and collection activity of all dischargeable debts.
Garnishments of domestic debts such as child support and alimony are non-dischargeable debts. Garnishments for these types of debt will continue if you are filing for Chapter 7, (total liquidation) being as the debt is non-dischargeable and not under the jurisdiction of the bankruptcy court.
Filing for Chapter 13 however, will stop ‘domestic’ type debts and their garnishments, at least until you can submit, and the courts approve, a plan to pay back your creditors. At which time your garnishment would not be reapplied as long as you met the payment obligations of your court-approved repayment plan.
If Your Wages Are Being Garnished
If your wages are being garnished, or you are afraid that they might soon be. It is best to talk to an experienced bankruptcy attorney about your financial situation as well as your goals regarding a fresh start or a reorganization plan as everyone’s situation is unique.
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