After filing for bankruptcy, you may have several important questions about what happens next. For example, you may want to know which assets you will be allowed to keep, and how long your repayment plan will last. Many of those who undergo this process may also wonder if their employee paycheck will be subject to garnishment. Fortunately, the attorneys from Green Law, PC, in Farmington, CT, have the answers you need.

What to Know About Filing for Bankruptcy & Wage Garnishment

What Is Wage Garnishment?

Wage garnishment typically occurs as the result of a court order. Those with unpaid taxes, defaulted student loans, child support, or court costs may be subject to it. The court may order a portion of the individual’s paycheck to be removed, month after month. This money will go to the creditor until the debt is paid off. Unfortunately, wage garnishment can have a negative effect on one’s credit and ability to receive loans.

Can It Happen to You?

After filing for bankruptcy, you legally cannot be subject to wage garnishment. Even if you have already been threatened with collection action, once you file for Chapter 7 or 13 bankruptcy, your paychecks are legally protected. Throughout your bankruptcy plan, your accounts will have an automatic stay that legally wards collectors away. To avoid harassment, give your lawyer a complete list of the names and addresses of every creditor. The court will then notify the creditors that you’ve filed for bankruptcy, which means they must leave you alone. If creditors still pursue you, talk to your attorney.

What Happens After Bankruptcy?

After your bankruptcy case is discharged or dismissed, you may be subject to wage garnishment again. However, since most of your debts should be discharged during bankruptcy, future garnishments are not typically an issue. The one exception is outstanding child support payments, as they cannot be discharged during bankruptcy. 

To learn more about what to expect when filing for bankruptcy, contact the attorneys from Green Law, PC. Their team employs their knowledge, experience, and expertise to understand how best to approach each individual’s situation. To schedule a complimentary consultation, call today at (860) 676-1336. You may also visit the law firm online.