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Wage garnishment is a court-ordered procedure in which the court directs your employer to send a part of your earnings to a person or an organization you owe money to. This process of wage garnishment usually stays until the debt you owe is fully cleared.

Wage garnishment orders are generally exercised on debts like child support payments, taxes, and student loans. It is also applicable to all other obligations that have been ordered by a court to be paid, resulting in a collections lawsuit.

Wage garnishment orders can be made on all such persons who receive personal earnings from their employers. Personal earnings could include wages, commissions, salaries, bonuses, and any income from retirement plans.

How Bankruptcy Stops a Garnishment: The Automatic Stay

A bankruptcy filing can help you stop a garnishment order. When you file for bankruptcy under Chapter 7 or Chapter 13, a bankruptcy court ordered automatic stay comes into effect. In simple terms, this automatic stay will hold all such actions taken against you as part of a garnishment order. The stay will also stop creditors from collecting debts from you. It can also remove all of your underlying debts.

The automatic stay provision of a bankruptcy filing is a very advantageous aid, but it must be used carefully. The automatic stay only lasts for about 30 days or might not be ordered at all if you file for bankruptcy repeatedly.

While filing for bankruptcy to stop a garnishment order, you should take note that the benefits provided by a Chapter 7 filing and a Chapter 13 filing may be different. For example, a Chapter 7 filing will not facilitate an automatic stay on a garnishment order for alimony while a Chapter 13 filing will.

By contacting an Elk Grove bankruptcy attorney, you can stop the wage garnishments and eliminate all of your qualifying debt.