For individuals struggling with the stress and strain of overwhelming debt, and trying to get ahead, bankruptcy protections may help provide relief. Facing wage garnishment on top of struggling with debt can create additional pressures and strains that can make the struggling individual feel hopeless.
Personal bankruptcy options, however, may be able to help stop wage garnishment and provide a fresh financial start for the filing party. When an individual struggling with debt is working hard to pay their bills, having their wages garnished so that they have fewer resources to pay down their debt can create overwhelming challenges. Personal bankruptcy options can prevent creditor collection actions from being filed or from progressing.
Filing for bankruptcy protection can help filing parties prevent creditors from filing lawsuits against them or halt the process if a lawsuit by a creditor has already been filed so that it does not progress to a judgment. Once a creditor has a judgment against the filing party, they can begin garnishing wages to recover the debt. When a creditor brings a lawsuit against a party owing a debt, they can obtain a judgment against them which is what allows them to garnish their wages to recover the judgment.
One way personal bankruptcy options provide immediate relief is that a temporary stay goes into effect as soon as the filing party has filed for bankruptcy protection. Because there are different bankruptcy options, that will apply differently to each situation, it is essential for those seeking a fresh financial start and facing wage garnishment to be familiar with their options.