Wage Garnishment and Bankruptcy

Wage garnishment is legal order in which your employer is required to deduct money from your salary and wages to be paid to a creditor. Wage garnishment orders can demand portions of your paycheck for resolving debts like spousal/child support, student loan debts or payments to credit card companies. However, for most debts garnishment can only be done after a lawsuit has been successfully filed and ordered by the court. This means that you have a small window of time to develop a plan to resolve your debts before the garnishment order is issued.

The Automatic Stay

One of the fastest paths to stop debt collections against you in any form is to file for bankruptcy protection. In doing so, an order will be issued called the automatic stay. This order prevents further debt collection against from being legally issued to you, including a wage garnishment. When in effect, the automatic stay stops all current collection actions and prevents additional collection actions while your debts are being resolved by the court.

The automatic stay in bankruptcies gives you protection from wage garnishment even if you have made a voluntary decision to file for it. You should determine the best way to deal with your debt. If you cannot cover it, it may be a good idea to consult with a Sacramento bankruptcy lawyer.