A wage garnishment that has already begun can be affected by filing bankruptcy. This post explains how the automatic stay applies in Chapter 7 and Chapter 13 cases, and what happens once the creditor receives notice of the filing.
Frequently Asked Questions
Does filing Chapter 7 or Chapter 13 stop a wage garnishment that is already underway?
Yes, absolutely. Once you file a bankruptcy, whether it’s a Chapter 7 or a Chapter 13, you get the benefit of what’s called the automatic stay. That is the federal bankruptcy protections that are put in place to protect you from any collection activity, including a wage garnishment.
Once your case is filed, a notice will be sent to the creditor that is garnishing the wages. And once they’re put on notice of the bankruptcy, then they will have to notify your employer to discontinue any further wage garnishment.
Are you struggling financially? Pratt & Maegli Law Firm in Rockford helps Illinois families and individuals explore Chapter 7 and Chapter 13 options with clear answers and a personal approach. Call (815) 315-0683 or visit rockfordbankruptcytoday.com to schedule a confidential consultation and take the first step toward real financial relief.