Filing for Chapter 7 bankruptcy can invoke a legal provision known as the automatic stay. This stay immediately stops all creditors’ attempts to collect a debt during your case. This stay will immediately stop a wage garnishment - or keep one from being started in the first place. There is an exception, however, if the garnishment if for child support payments or similar debt that cannot be discharged in Chapter 7 bankruptcies.
The automatic stay stops garnishment or levies of wages or bank accounts, collection attempts through harassing phone calls or letters, starting or continuing any lawsuits, repossession of assets, and foreclosure on property.
Both Chapter 7 bankruptcy and wage garnishment are serious situations. The bankruptcy attorneys at the Frutkin Law Firm, PLC, in Phoenix, Arizona, have decades of experience in handling bankruptcies cases. They can help you determine the right path for your circumstances.
