Can Bankruptcy Stop Wage Garnishment?
Yes, immediately. The automatic stay under Section 362 halts all garnishments the moment you file bankruptcy. This applies to credit card judgments, medical debt judgments, personal loan judgments, and most other civil judgments. Learn about the automatic stay.
How Fast Does It Work?
The stay is effective upon filing -- not when the creditor receives notice. Your attorney (or you, if pro se) should notify your employer and the garnishing creditor immediately. Most employers stop withholding within 1-2 pay periods after receiving notice of the filing.
Getting Garnished Money Back
Money garnished within 90 days before filing may be recoverable as a preference under Section 547. You must file a motion with the court. The amount must exceed $600. This is not automatic -- you have to ask for it.
What Bankruptcy Cannot Stop
Child support garnishment continues in most cases. Certain tax levies may continue. Student loan garnishments can be stopped by the stay but the underlying debt usually survives discharge. Criminal restitution garnishments may continue.
Chapter 7 vs Chapter 13
Chapter 7: Stops the garnishment. Discharges the underlying debt in 4-6 months. If the debt is eliminated, the garnishment never returns. whatischapter7.com.
Chapter 13: Stops the garnishment. Repays debts through a structured plan over 3-5 years. Better if you have assets to protect or non-dischargeable debts. chapter13plan.org.
Emergency Filing
If your next paycheck is about to be garnished, you can file a bare petition (just the petition form without schedules) to trigger the automatic stay immediately. You must complete the remaining documents within 14 days. Learn about filing requirements.
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