Can bankruptcy stop wage garnishment? Having your wages garnished can be a stressful and overwhelming experience. It can feel like there’s no end in sight. Creditors keep taking a portion of your paycheck every time you get paid. If you’re struggling with wage garnishment, bankruptcy might solve your problems.
In 2023, wage garnishments are likely to increase. This is due to the ongoing economic effects of the COVID-19 pandemic. With inflation and rising living costs, individuals struggle to make ends meet. They may fall behind on their debts, putting them at risk for wage garnishment. As a result, individuals need to be proactive to stop wage garnishments before they even begin if at all possible.
Wage garnishment is a legal process in which a creditor can collect a debt by taking a portion of your wages or salary. When a creditor obtains a garnishment order, your employer must withhold a part of your pay. Your employer then sends it directly to the creditor. The garnishment can continue until the debt is paid in full or a court orders the garnishment to stop.
If you’re facing wage garnishment, bankruptcy can help you to stop creditor collection efforts, including wage garnishment. When you file for bankruptcy, an automatic stay goes into effect, which stops creditors from taking any collection actions against you. This includes wage garnishments. The powerful notice of bankruptcy acts as an instant order for all wage garnishments to be canceled immediately.
The automatic stay of bankruptcy is a powerful tool. It can provide immediate relief from wage garnishment and other collection activities, giving you time to manage your finances. Depending on your situation, filing for bankruptcy can also help you eliminate most debts while keeping certain debts. Alternatively, you can create a repayment plan to make your monthly payments more manageable.
Dealing with wage garnishment can be a difficult and stressful experience. However, bankruptcy can stop wage garnishments and give you a fresh financial start. If you’re struggling with wage garnishment or other debt-related issues, contact an experienced bankruptcy attorney. Find out how filing for bankruptcy can help you find relief and get your finances back on track.