If you are facing insurmountable debts, filing for bankruptcy might be a good option for you. This is especially true if you are dealing with wage garnishments that take chunks of your paycheck away before it even has the chance to hit your account. However, it’s important to know how the automatic stay from bankruptcy works and how garnishments can be affected before you file. A Rockland County Chapter 13 bankruptcy lawyer from our firm can help you.
Will Filing for Bankruptcy Stop Wage Garnishments?
Yes, this process can put a stop to most types of wage garnishments. This is because the automatic stay issued once you file can put a stop to debt collection activities, and this includes the garnishing of your wages. This stay could only last for a short while though, so it’s necessary to get the bankruptcy process underway so that you can begin addressing your debts.
You also have to worry that your employer and creditor might not get the notice about your bankruptcy right away. You and your lawyer can contact them to put a stop to the garnishment as quickly as possible.
What Types of Wage Garnishments Won’t Be Stopped?
Not all wage garnishments can be stopped in this manner though. The most common problem for filers tends to be domestic support obligations, like alimony or child support. If you are behind on these payments and your wages have been garnished as a result, your bankruptcy filing will not stop the garnishment.
This is why it is important to really evaluate what kinds of debts you are dealing with before you file for bankruptcy. If bankruptcy cannot address a large portion of your debt, there really is not much point in filing.
Can Wage Garnishments Continue After Bankruptcy?
Some other types of wage garnishments can continue even after you file for bankruptcy. You may be able to wipe out your credit card debt, but your recent tax liabilities could stick around. State or federal tax collectors can continue or begin to go after your paycheck despite your recent bankruptcy filing.
Is Bankruptcy My Best Option?
Bankruptcy can be an effective way to deal with debts, but it has drawbacks. The most notable one is probably its effect on your credit score. It can reduce your score for a long time, making it harder to secure loans or housing.
It could be worthwhile to see if wage garnishments can be addressed in other ways before filing for bankruptcy. You may be able to settle the debt or ask for some kind of exemption. We can help you explore your options.
Talk to a Bankruptcy Attorney
So if you are considering going the bankruptcy route, contact the Lauterbach Law Firm. We can tell you more about this process and whether it’s the right option for you.
