Wage garnishments are one of the worse things that can occur to your income and state of living. It is important to try to avoid this, which bankruptcy filing can help with. Continue reading below to learn more about how filing for bankruptcy can help you in stopping wage garnishment.
How Does Filing Bankruptcy Stop a Wage Garnishment?
A bankruptcy starts the process of an automatic stay. An automatic stay is a court ordered process that is given to all creditors upon the effect being begun. It preventss creditors from being able to collect any more debts in any method, including via the means of wage garnishment.
It is important to note, however, that this automatic stay will not stop proceedings forever. It depends on your history of bankruptcy to determine if you are even approved to have the court ordered effect be put into place. It also may only last a short time.
What Does Not Apply?
Bankruptcy filing does not necessarily stop all wage garnishment. An automatic stay does not apply to all debt collections. This is true if your debt is a chapter seven case or if it is under a domestic obligation such as child support.
A chapter thirteen case will automatically be granted automatic stay. This includes child support, but you have to figure out a payment plan to ensure the payments are made on a timely basis. If you stop making your monthly payments, there is a chance for a wage garnishment threat to return.
Stopping Wage Garnishment Immediately
It can take a court over a week to send the necessary documentation to the debt collection agencies. This means that there is still a chance for wage garnishment to occur in that time frame. To ensure it is stopped as quick as possible, inform the employer of the filing, as well as the collection agency.
It is important to give the agencies and job organizations all bankruptcy information including case numbers. As long as the collection agency knows and can confirm, all wage garnishments will cease as soon as possible.
Can I Obtain Any of My Money that was Previously Garnished?
It could be possible to receive back some of the money that had previously been garnished before filing for bankruptcy. In order to receive the money back, you must have filed for bankruptcy at most ninety days after the first garnishment. The amount must also be a particular amount.
When receiving your money back, you have to file an exemption which could be another costly expense. You will also have to sue the debt collection agency which will be another incurred costs. You need to determine if it is really worth it.
When engaging in bankruptcy filing, it is important to contact a bankruptcy attorney. He or she can guide you through the process and will provide up front information to you every step of the way. Contact us today at Fair Fee Legal Services to speak with a bankruptcy attorney.