If you fear your wages will be garnished in the near future, then in most cases filing for Chapter 7 bankruptcy will stop the garnishment. The reason for this, includes an automatic stay provision in the bankruptcy law. The automatic stay prohibits most creditors from continuing with collection actions during your bankruptcy case.
What Is Wage Garnishment in Bankruptcy?
With the exception of student loans, taxes, and child support , individuals considering filing for bankruptcy must understand that most creditors cannot garnish your wages without first suing you in court, and getting a money judgment. However, once a creditor obtains a judgement, then they can get an order to garnish your wages. Further, your employer will be notified and at that time will hold back the portion of your wages identified in the judgement to pay the creditor.
There are limits to how much an employer can garnish each month. Our law firm is experienced in personal bankruptcy for individuals filing in Massachusetts. We work with our clients to limit the monetary contribution to creditors while implementing a solid strategy when considering Chapter 7 bankruptcy protection.
Please contact us today for your FREE case evaluation 781-277-0411. With five office locations throughout Massachusetts including Worcester, Framingham, Watertown, Westborough, and Leominster – we are sure to be near you!