A wage garnishment can seriously impact your ability to feed your family.
People contact me every week about the subject of wage garnishment. Either their paycheck is already being garnished or it’s about to be garnished by a creditor to whom they owe money.
They all want to know the same thing. Will filing bankruptcy stop a wage garnishment? In most cases the answer is “YES!”
A Wage Garnishment Is A Terrible Blow To The Family
If you’re already struggling with debt problems, having your paycheck garnished is a killer.
Realize that California allows your creditor to take 25% of your paycheck through garnishment. And that 25% deduction from your paycheck will continue each paycheck until the judgment debt is fully paid.
For you . . . that likely means not having enough money to make your necessary living expenses. Things like:
• Rent or mortgage payment,
• Car payment,
• Electric, gas or water bill,
• Groceries, and
• Medicine.
I always wish these people had contacted me sooner so that I could have prevented the wage garnishment from happening in the first place.
Here’s Why Filing Bankruptcy Stops A Wage Garnishment
The second a bankruptcy petition is filed, an automatic stay goes into effect. And this automatic stay is a powerful federal law that prohibits a creditor from taking any further collection activity without the permission of the bankruptcy judge. That means:
.• If the garnishment has not begun before your bankruptcy case is filed, then the bankruptcy will prevent the garnishment from beginning at all.
• If the garnishment starts before your bankruptcy case is filed, then the garnishment will stop immediately after your case is filed.
The automatic stay stops the vast majority of wage garnishments except for a few exceptions such as for child-support or other court-ordered domestic support obligations.
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Here’s Some Good News About Wage Garnishment
If a creditor has taken over $600 from your paycheck or your bank account within the 90 days before you file bankruptcy, this is known as a “preferential transfer” and the funds taken by the wage garnishment can be recovered from the creditor.
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If you’re afraid that your paycheck is about to be garnished . . . or worse yet . . . if your paycheck is already being garnished, contact me today to discuss how bankruptcy can prevent or stop the wage garnishment.
Perhaps you have some questions. You can reach my by phone at 760-523-9090. Or just click on the ORANGE “Contact Me” button at the top of your screen. I’ll contact you back and make arrangements to meet with you.
Talk with me. I’ll treat you like a friend.
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