It can be overwhelming to be facing overpowering debt. Then add to the stress by including wage garnishment to an already challenging circumstance. It can already be stressful to try to address debts, monthly bills and other financial concerns prior to the added pressure of wage garnishment, which can make all of those concerns even more challenging. As a result, it can be tremendously important to stop wage garnishment.
Once a creditor has filed a lawsuit against a party owing them a debt, it is likely that the creditor can obtain a judgment against the party owing the debt. Once a judgment has been awarded, the creditor can begin wage garnishment which can be especially overwhelming and stressful for a party trying to repay their debts. Filing for bankruptcy can help protect the filing party from creditor collection actions and wage garnishment.
After a filing party files for Chapter 7 bankruptcy protection, an automatic stay goes into effect that prevents collection actions against the filing party during the bankruptcy process. This can provide protection and relief from collection actions and wage garnishment. A creditor collection action in process can also be stopped and may be prevented from progressing to the wage garnishment stage of the process. If wage garnishment has already begun, it may also be stopped and some wages garnished may be recovered.
In addition, the Chapter 7 liquidation process can provide much-needed debt relief for individuals struggling with overwhelming debt, while protecting exempt assets. Because the needs of individuals struggling with debt can be unique to their circumstances, it is important for them to understand each option and how the options available can help them when determining what to do about concerns like wage garnishment.