Many people ask me, “Will filing bankruptcy stop my wages from being garnished?” They are already short on cash and desperately seeking a way to survive.
The short answer is yes, with a few limited exceptions such as past due child support . Once you file bankruptcy an automatic stay is immediately imposed on your creditors and they must stop any collection efforts against you. They can not call you, write you or send you a bill.
If a creditor is already garnishing wages and you meet certain conditions you can usually get back the wages garnished within the 90- day period prior to bankruptcy filing, if they were more than $600 in aggregate and you have enough exemptions to cover them. The automatic stay on wage garnishment does not apply to domestic support obligations such as alimony and child support because these are considered priority debts that can not be discharged.
Collection does stop on:
. All 1040 income taxes of the individual debtor including interest and penalties
. All liability the individual may have as a “control” person for unpaid employment taxes
for a business
. All wage garnishments, bank account levies and filing and enforcement of tax liens
When facing wage garnishment you should get the legal help you need as soon as possible. A lawyer can analyze your situation and help you decide if bankruptcy is right for you. Talk to an attorney in your area. If you live in the Central District of California you can call me at 626-817-2611.
Will Filing Bankruptcy Stop My Wages From Being Garnished?
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