Stopping Wage Garnishment Through Bankruptcy
The short answer to this question is yes, but first, it’s crucial to understand how wage garnishment works when it comes to bankruptcy. If your wages are being garnished, here’s what you can do.
What is Wage Garnishment
Wage garnishment happens when a creditor files a petition in court to sue you to receive a money judgment. Once your creditor has received a money judgment through the courts, they can then move forward with an order to garnish your wages.
Once this happens, the sheriff or marshal will forward the order to your employer and will be instructed on the portion of your wages that will be sent to your creditor. While this may sound like a harrowing experience, there are limits to how much can be garnished from your wages. If you suspect your wages will be garnished, contact a bankruptcy attorney as soon as possible to learn your rights.
How To Avoid Wage Garnishment
Chapter 7 bankruptcy may be an option to avoid your creditors from garnishing your wages. Once you are in Chapter 7 bankruptcy, an automatic stay will offer you protection from your creditors from taking further action in garnishing your wages. However, there are some exceptions in which certain debts are not protected under Chapter 7 bankruptcy. Read on to learn more.
What Is Not Included in Bankruptcy Protection
When it comes to wage garnishment, certain types of debt are not permitted to be included in Chapter 7 bankruptcy. This may include but not limited to the following debt situations:
- Student loans
- Certain taxes
- Child support
- Spousal support