Is your debt piling up and your wages are being garnished or do you think they will be soon? Don’t worry, there’s a solution. To avoid or prevent wage garnishments and get back on your feet, you could hire a reputable Chapter 7 bankruptcy attorney in San Diego and file for bankruptcy under this chapter with professional assistance. Keep reading to learn more about wage garnishments and how Chapter 7 bankruptcy can stop this type of collection.
What is a wage garnishment?
A wage garnishment or wage attachment is a collection activity when your creditor gets a portion of your wages. Usually, creditors need to sue you, win, and get a money judgment to be able to collect your debt through your wages.
Once a creditor gets an order from the court to garnish your wages, your employer receives the order and has to send a certain amount of your paycheck to your creditor each pay period.
You should be aware that there are some exceptions when this process isn’t required for your creditor to be able to garnish your wages, and these include taxes, child support, and student loans.
What’s the role of automatic stay?
When you can’t deal with your debt, filing for Chapter 7 bankruptcy will provide you with the necessary relief and eliminate most or all of your debt.
When you’ve successfully filed your claim, automatic stay will be imposed. This prevents creditors from collecting during your bankruptcy case, which also includes wage garnishments. The court will notify your creditor about it, and you and your attorney can also forward a copy of your bankruptcy filing to the creditor to speed things up.
However, there are certain activities that Chapter 7 automatic stay can’t stop, and one of them is child support collection. If you file for Chapter 13 bankruptcy, it will stop all wage garnishments, but you will have to adhere to a repayment plan.
Once the automatic stay is in place, your creditor may request the court to lift it. Although this rarely happens, the court may approve the request if the creditor loses money during the bankruptcy proceedings, for example.
What happens with my wage garnishments after finalizing bankruptcy?
Chapter 7 automatic stay stops once your bankruptcy case is finalized. If your debt gets discharged, your creditor won’t be able to garnish your wages even after your case is closed. In case some of your debt is non-dischargeable, your creditor will be able to resume wage garnishments since you’ll be obligated to repay it.
It’s best to schedule a consultation with qualified attorneys who can help you make the right decision based on your specific situation.
Which Chapter 7 bankruptcy attorney in San Diego should I hire to help me throughout the process?
Going through bankruptcy doesn’t have to be as complicated as it may seem. With the right support and legal representation, you’ll stop wage garnishment, get debt relief, and be able to enjoy some stress-free time, perhaps visiting the Old Town.
At Bankruptcy Law Offices of Mark L. Miller, we take a personalized approach and take each client’s unique situation into account in order to help them deal with financial strain in the best way possible. Our highly qualified and experienced bankruptcy lawyers will answer all of your questions regarding wage garnishments, Chapter 7 bankruptcy, and more. We’ll guide you every step of the way from filing to finalizing your case until you get your fresh start.
Feel free to reach out to us and schedule your initial consultation!