Can Bankruptcy Stop A Garnishment Completely?

Assuming you’re battling with unpaid financial obligations, quite possibly you’re managing at least one creditor attempting to sue and garnish your wages. You may be contemplating whether there’s a method for halting the garnishment. The response is that there definitely is. However, there are various ways to deal with these creditors. One of them includes declaring financial bankruptcy.

What Is a Wage Garnishment?

Wage garnishment happens when a business keeps a part of a worker’s check then, at that point, sends that cash to a court clerk’s office to distribute to a creditor. Most compensation garnishments are the consequence of a court ordered judgment in the creditor’s approval.

A few guidelines limit how much cash can be taken from a check. Wage garnishments that are the aftereffect of buyer obligations are normally restricted to 25% of the borrower’s salary in Alabama. However, on the off chance that the garnishment is the aftereffect of back child support, the sum can be just about as high as 60% of someone’s salary.

How Does Bankruptcy Prevent a Creditor from Garnishing My Wages?

The essential means by which liquidation will stop your compensation garnishment is through the automatic stay of protection. An automatic stay is an impermanent stop on most collection efforts by any creditors.

The automatic stay can remain basically for the whole Chapter 7 process. However, it very well may be just about as short as 30 days if you petitioned for financial protection in the recent past. In any case, in certain circumstances, you may not be qualified for the stay when a bankruptcy is filed.

The automatic stay won’t influence all wage garnishments. Certain incorporate obligations connecting with past domestic relations orders, for example.  To prevent wage garnishments emerging from child support obligations, you’ll have to go to your nearby court and request that the support be changed.

Thinking about Chapter 7 Bankruptcy to Stop Your Garnishment?

The above is only a short outline of how bankruptcy can help you out if your wages are getting taken. For instance, in specific circumstances, petitioning for Chapter 13 insolvency rather than Chapter 7 can briefly stop wage garnishments that are the consequence of mortgage commitments. To get answers to any questions you may have about halting garnishments, reach out to a Birmingham bankruptcy attorney today for more information.

Steven Harris is a family law & divorce attorney in Birmingham, Alabama. He lives with his lovely wife of fifteen years and regularly writes informative articles online about domestic relations law and other related topics. You can follow him on Twitter @theharrisfirm.

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