How does bankruptcy affect wage garnishment?

How does bankruptcy affect wage garnishment?

| May 11, 2018 | Blog |

When you have been struggling with debts over a prolonged period of time, you may become subject to wage garnishment. This is often the last resort action that creditors are allowed to take when debtors have failed to pay what they owe.

Wage garnishment is never an ideal situation, because it means that you have money taken from your salary before you even receive it. This can be very upsetting, especially when the person is struggling with other debts and to be able to afford to pay for the basic necessities.

Those who are struggling with ever-increasing debts may consider bankruptcy as an option. In some circumstances, bankruptcy can be a great way forward for those struggling to repay their debts, as it can offer a realistic path forward while allowing some or all of their debts to be written off. So, what does filing for bankruptcy mean for wage garnishments?

Wage garnishment and bankruptcy

Filing for any type of bankruptcy generally leads to an automatic stay being put in place. This typically means that all of your creditors and debt collectors must immediately cease from their collection efforts. This can be a big relief for those who are constantly receiving phone calls and letters from their creditors. It also means that bankruptcy filers will typically be immune from any lawsuits made against them in regard to their unpaid debts.

In addition to this, your creditors generally cannot continue to garnish your wages when the automatic stay is in place. Nor can they try to enact an order to garnish wages.

What happens if I file for bankruptcy and continue to have my wages garnished?

Your employer and your creditor are those who are ultimately in control of wage garnishment, therefore it is important that you notify them of your bankruptcy filing. It is a good idea to send your employer a copy of your bankruptcy petition when you file. You may have the right to take legal action if you continue to experience wage garnishment.

If you are experiencing wage garnishment in Maryland, filing for bankruptcy might be an option worth looking into for getting a fresh start and freedom from your debts

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