Tuesday, April 26, 2011

Filing for Bankruptcy Can Stop or Delay a Wage Garnishment

Filing for bankruptcy in Phoenix, Arizona, can stop a wage garnishment order. Whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, an “automatic stay” becomes immediately effective that stops all debt collection processes, including wage garnishment.






The notable exception to this automatic stay is wages that are garnished for child support. This exception exists for two reasons: first, a child’s well-being should never be adversely affected by any court proceeding, and second, child support debt is not dischargeable in bankruptcy filings, and therefore will not be a part of your bankruptcy proceedings.

Consulting with experienced bankruptcy attorneys is always a good idea. Wage garnishment alone is not a reason to file for bankruptcy, and a good bankruptcy lawyer can help you evaluate all other options.