Stopping wage garnishments by filing bankruptcy
By Stephen Behrends, Jan 24 2017 04:30AM
This is a subject of confusion for many people if they start being garnished at work for an old bill. They often mistakenly think that once a garnishment has started, a bankruptcy cannot stop it. This is incorrect. The bankruptcy filing immediately stops all collection actions like garnishments.
We notify your employer and the creditor as soon as the case is filed that they must stop the wage garnishment. Then, we follow up to make sure that the garnishment is actually stopped. If funds are taken out of one of your paychecks after the case is filed, we make sure that that money is paid back to you.
To be able to quickly stop a garnishment when a case is filed, we need to have the contact information for your payroll department. Then, we can call as soon as the case is filed to notify them to stop the garnishment and then send a follow up letter.