How soon will my wage garnishment stop after I file for bankruptcy?

On Behalf of | Jun 28, 2024 | Bankruptcy |

Wage garnishment happens when creditors take money directly from a person’s paycheck to pay off a debt. This can create financial stress and make it hard to pay for daily expenses. 

Filing for bankruptcy can provide relief from wage garnishment and give individuals a chance to rebuild their finances.

Filing for Bankruptcy

When someone files for bankruptcy, an automatic stay goes into effect. The automatic stay is a court order that stops most collection actions, including wage garnishments. This stay starts as soon as you file the bankruptcy case and it serves as a shield, protecting the debtor from further financial harm.

Informing Employers and Creditors

After filing for bankruptcy, it is important to inform employers and creditors about the case. The bankruptcy court will send a notice to all listed creditors, but this can take a few days. To speed up the process, individuals can provide a copy of the bankruptcy filing to their employer’s payroll department. This helps ensure that wage garnishments stop quickly.

Timing of Wage Garnishment Relief

The timing of when wage garnishment stops can vary. In most cases, garnishments stop immediately after the bankruptcy case is filed and the employer is notified. However, the exact timing can depend on how quickly the employer processes the information. Some employers may need a few days to stop the garnishment, while others may act more quickly.

Following Up to Ensure Compliance

Even after notifying the employer, it is wise to follow up to ensure that the garnishment has stopped. If the garnishment continues, individuals can contact their bankruptcy attorney for assistance. The attorney can provide additional documentation or take further legal action if necessary.

Moving Forward After Bankruptcy

Stopping wage garnishment is one of the benefits of filing for bankruptcy. Once the garnishments stop, individuals can focus on their financial recovery. They can start budgeting, saving, and planning for a more stable financial future. Bankruptcy provides a fresh start and an opportunity to regain control of finances.


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