What is Garnishment of Paychecks?
A paycheck garnishment is a court order that directs your employer to deduct a certain amount of money from your paycheck and send it directly to your creditor as payment for your debt. Your employer will then deduct the amount from your remuneration. If they do not, they may be held responsible for your debt.
Can Declaring Bankruptcy Halt Wage Garnishment?
A debtor confronted with a wage garnishment has multiple options. The debtor may negotiate a payment plan in order to persuade the creditor not to confiscate his wages. This is frequently difficult to achieve. The creditors are hesitant to release a garnishment because it virtually ensures that they will receive payment on the debt.
Filing for bankruptcy is the only method that will permanently halt garnishment. Once a petition for bankruptcy is filed, the bankruptcy court automatically suspends all collection activities. Simply stated, creditors will not be permitted to collect on your debt unless your bankruptcy is dismissed or the court rules that a specific debt is not dischargeable.
During the duration of the automatic stay, creditors are prohibited from garnishing your wages, and any garnishment that has already been initiated must be dismissed. If the bankruptcy proceeding goes smoothly, you will receive a discharge. A discharge permanently absolves you of all responsibility for the discharged debts.
However, the automatic suspension only protects certain types of assets. Priority debts such as alimony, the majority of delinquent taxes, the majority of student loans, and child support cannot be discharged and are not covered by the automatic stay.
The debtor must notify the Human Resources Department of his employer and the creditor's attorney of the bankruptcy filing and provide the necessary supporting documents for wage garnishment to be immediately ceased.
Important Considerations
Filing for bankruptcy is not something that should be taken casually. It should only be used as a last resort. Before declaring bankruptcy, you should consider all of your options. In the end, it will remain on your credit report for ten years. Before filing for bankruptcy, seek the counsel of a bankruptcy attorney who can help you evaluate the entire situation.
Contact a bankruptcy attorney with experience in bankruptcy law and assisting clients in protecting their assets for more information on how bankruptcy can halt wage garnishment. The Law Office of Kevin J. Pratt is constituted of committed Georgia bankruptcy attorneys who place the client's needs first.""
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