Stopping Wage Garnishments With A Personal Bankruptcy

Trying to keep up with an ever-growing stack of bills can be difficult enough for those struggling financially. The debt trap can be especially hard to escape when wage garnishments reduce the amount of money coming in. Filing a Chapter 7 or Chapter 13 personal bankruptcy offers you a way to stop wage garnishment and can even help you recover some of the money that has been deducted from your paychecks.

Stopping Wage Garnishments With The Automatic Stay

The automatic stay that is issued when you file for bankruptcy puts an end to collection efforts, including wage garnishment. Furthermore, creditors must petition the court with a valid and compelling reason in order to get the stay lifted. Ast & Schmidt, P.C., in Morristown has been helping people stop wage garnishment for decades. Our attorneys are committed to making the process as straightforward as possible.

Wage Garnishments After A Bankruptcy

The automatic stay prevents wage garnishments from the moment a bankruptcy is filed until the case is discharged or dismissed. Creditors cannot resume garnishing wages if the underlying debt was discharged in a bankruptcy, but they may continue to garnish paychecks when cases are dismissed.

Certain obligations such as alimony and child support payments are considered primary debts and are not covered by the stay.

It May Be Wise To Act Sooner Rather Than Later

In addition to stopping further wage garnishments, the automatic stay may allow you to recover funds that have already been garnished if you meet certain requirements. Taking action quickly could be prudent, though, as only deductions made during the 90 days prior to filing a bankruptcy may be recovered.

If you would like to know more about these requirements and the other ways that filing a bankruptcy could reshape your financial future, please schedule a free consultation at our office in New Jersey or contact one of our lawyers by calling 973-984-1300 or filling out our online contact form.

Ast & Schmidt, P.C., is a debt relief agency. We help individuals file for bankruptcy relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.