If you have accumulated delinquent debts over time, there is a chance your creditors will eventually attempt to recover what they are owed. One way they may do this is by obtaining a court order to garnish your wages. Should this happen, it can put you in an even more dire financial situation than before. Fortunately, if you have been notified your wages are going to be garnished, bankruptcy law gives you the opportunity to take action to prevent it. Learn below how filing bankruptcy affects garnishment.

What to Know About Wage Garnishment & Bankruptcy Law 

How Bankruptcy Works to Stop Garnishments 

When you file for either a Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect requiring that all collections activity against you ceases immediately. This means even if a creditor has already been granted a wage garnishment order, money can no longer be taken out of your paycheck. If any creditors continue in their efforts to collect on the debt you owe, they will face heavy fines and penalties.  

When Are Garnishments Not Stopped?

Bankruptcy will permanently prevent wage garnishments for most debts; however, there are certain circumstances in which a judgment for garnishment is only temporarily stopped. This usually happens for debts that cannot be discharged in a bankruptcy, such as taxes and student loans. Once your bankruptcy case has been closed, your wages can still be garnished for these debts. Additionally, if you owe back child or spousal support, you won’t get any relief from an automatic stay—even temporarily. 

Declaring bankruptcy may be the solution you’re looking for to put a stop to wage garnishment. Offering more than 35 years of experience in this area of practice, Ray T. Kennington, Attorney At Law can help determine if this is the best way for you to regain financial freedom. He has extensive knowledge of bankruptcy law and can guide you through the filing process with ease. Contact his Ozark, AL, office at (334) 445-1200 for expert legal advice, or visit him online for more information.