Bankruptcy can stop wage garnishments

I often hear this situation when clients come to seek help. They will tell me on their last check from their job it was garnished.

“What am I going to do I cannot make enough money to live on and being garnished is not helping the situation I am in. I am now behind on my car payment and my house payment because of the garnishment.”

I hate garnishments they make it difficult to make your payments on the things you need to in order to live such as the car payments the utilities rent and food.

When I hear this situation I am always happy to tell my clients that YES bankruptcy can stop garnishments. I will also inform them that we need to get this bankruptcy filed fast so the collectors will not take any more of their hard earned money.

Bankruptcy can even stop a garnishment that has already started.  I think this is great news and I usually sense a little relief in the person who is asking me these questions.

Garnishments can sometimes be tricky to stop. How a garnishment is stopped is the person taking the money needs to be informed of the recently filed bankruptcy then they need to let the employer know that they need to stop sending the money to them. Sometimes the employer doesn’t get word that they should stop sending the money sometimes the collector doesn’t tell the employer and the garnishment goes on for a few more pay cycles. This is not a pleasant thing to happen to someone who just filed bankruptcy. But all is not lost the people garnishing the money are supposed to return any money that was taken after the bankruptcy was filed.

I hate garnishments they are one of my favorite things to stop when I am helping a client go through the bankruptcy process.