If you are facing an unsurmountable debt and you have creditors taking pieces of your paycheck each week, you may be tempted to file for bankruptcy. This could be the right option for you and this can actually stop some kinds of wage garnishments. It’s not always the best solution though, which is why you should weigh your options and talk to a Bergen County Chapter 13 bankruptcy lawyer before you make up your mind.
Will Filing for Bankruptcy End Wage Garnishments?
It can. This is because filing for bankruptcy results in an automatic stay being issued. This stops all kinds of debt collection activities. This means wage garnishments, in many cases.
However, we should note that not all wage garnishments can be stopped in this way. You may also need to notify your employer and the creditor garnishing your wages about the automatic stay right away. Otherwise, it can take some time for notice to reach the right people and you could end up having wages garnished even after your stay has been issued.
When Can Wage Garnishments Ignore an Automatic Stay?
As we mentioned, some wage garnishments cannot be stopped by filing for bankruptcy. Others might stop temporarily, only to start up again once your other debts have been discharged. It’s important to know what kind of debt can actually be addressed through the bankruptcy process before you file. If you have a bunch of debt that won’t go away after you file, there might not be much of a point in doing this.
If you are wondering what kinds of wage garnishments are not usually stopped by bankruptcy, family support payments are among the most common. If you owe back child support or alimony, bankruptcy is not going to wipe that out and it’s unlikely that the automatic stay will stop your paycheck from being garnished.
Can I Recover Money That Wage Garnishments Took From Me?
Sometimes wage garnishments can continue even if bankruptcy is filed because the creditor and your employer were not notified on time. If this happens to you, it can be possible to get your money back. However, it’s tough to do and generally not worth the effort. You are better off focusing on making sure that your creditor and employer are notified promptly once you begin the bankruptcy process.
Is Bankruptcy My Only Option Here?
You may also be able to stop wage garnishments without filing for bankruptcy. You may be able to:
- Settle your debt
- Explore exemptions
- Fight the debt in court
You should explore all of your options before filing.
Schedule Your Consultation
If you want to learn more about the bankruptcy process and how it could help you, contact the Law Office of Boyd & Squitieri. We can schedule a consultation with our team, take a closer look at your debt, and help you figure out the best path towards a fresh financial start.
