SUMMARY: Filing bankruptcy may immediately stop certain wage garnishments. Both Chapter 7 bankruptcy and Chapter 13 bankruptcy may be useful in stopping garnishment.
Filing an emergency bankruptcy petition
An emergency bankruptcy petition can be filed to attempt to stop wage garnishment. An emergency petition only requires a small amount of paperwork and can be done very quickly. Typically, once the petition is filed, the stay order will instantly be entered.
Filing bankruptcy may stop wage garnishments
Bankruptcy may immediately stop wage garnishment. Depending on the type of garnishment, Chapter 7 bankruptcy or Chapter 13 bankruptcy may be chosen. The instant the bankruptcy is filed, an automatic stay order is usually entered.
Notifying the creditor to stop garnishing
You should provide your attorney with the name, address and fax number of the garnishing creditor. The garnishing creditor is notified by fax and mail. Your employer may also need to be faxed a copy of the order. If you have received a notice of intent to garnish, it is important to contact an attorney immediately.
Recovering money garnished in the last 90 days
A debtor should provide his attorney with proof (such as paystubs) of the amount garnished from a paycheck in the last 90 days. Recovery of funds garnished in the 90 days before filing may be possible if the debtor has exemptions available to protect the funds upon return from the creditors. Creditors often voluntarily return wages garnished upon request by the debtor’s attorney.
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