Will Bankruptcy Stop My Wage Garnishment?

Bankruptcy is designed to give you a fresh financial start by eliminating most forms of debt. It can also help you if you are facing action from creditors, including foreclosure, repossession, lawsuits, and wage garnishment. Here is what you should know about using bankruptcy to stop a wage garnishment.

Wage Garnishment and Bankruptcy Protection

When you file for bankruptcy, the automatic stay goes into effect immediately. The automatic stay prevents the vast majority of creditors from starting or continuing collection actions until your bankruptcy case is resolved or they get court approval. The automatic stay applies to both Chapter 7 and Chapter 13 bankruptcies.

In New York, wage garnishment is considered a collection activity against you. When you file for bankruptcy, the creditor must discontinue the wage garnishment with few exceptions like child support. Because wage garnishment typically requires first receiving a judgment against you in court, bankruptcy involving wage garnishment can be complicated. You may want to work with a bankruptcy lawyer Brighton Beach law firm to ensure your bankruptcy petition is filled out properly.

How to Stop Wage Garnishment

Your bankruptcy petition must include a list of your creditors and contact information. The court will notify every creditor on your list and they must take the necessary steps to stop the wage garnishment.

If you are concerned about the creditor not being informed soon enough to stop the next garnishment, you can also contact the creditor yourself. Fax proof of your bankruptcy filing and confirm they will notify your county sheriff to stop the garnishment. You can also follow up with the county sheriff and your payroll department to let them know they should receive information about the wage garnishment. Even if the wage garnishment continues briefly after you file for bankruptcy, the sheriff will likely mail back any funds they receive to your employer, who will issue the money on a future paycheck.

Contact a Brooklyn Bankruptcy Attorney

If you have received a notice of wage garnishment and you cannot afford to repay the debt, bankruptcy may be a good solution. A Brighton Beach bankruptcy lawyer can help you file for bankruptcy protection quickly to stop a wage garnishment before it happens or discontinue an existing garnishment.