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There are many advantages in filing for bankruptcy and wage garnishment suspension and their permanent cessations are one of the advantages. It is highly advisable to contact a good attorney and understand your case and whether or not it is good for and under which chapter you should file.
- The first thing that happens just after you file –
In most cases, if one is eligible for it, apply for chapter 7 bankruptcy and here almost all your debts are cleared except some taxes, student loans, child support, alimony, and/or criminal fines which are suspended till the time your bankruptcy case is going on. When filing for bankruptcy the first thing that happens is all your creditor’s collection efforts, foreclosure, and repossessions are put to stop with the help of the Automatic Stay.
- What is wage garnishment?
Here the primary motive of your creditor is to recover the debt. Garnishment is a legal remedy only authorized by the court and it is the last resort in collection efforts. The debtors normally don’t think they will have trouble making payments but the garnishment can hit their wages. It can only be initiated by court orders and if a judgment of money owed is entered.
From the formal notice to the executory title, it is a lot of legal procedures. The money judgment will be forwarded to the employer and the employer will then assign some amount of money as directed by the court from the employee’s wage to be sent to the creditor’s account.
- What is an automatic stay?
An automatic stay is applied to almost all bankruptcy cases, it stops almost all collection efforts of the creditors it also includes any foreclosure and repossession of property or the vehicle. It begins almost immediately when the petition is filed. The court requires the debtor to provide the creditor’s names and addresses to the court to notify them. Recently garnished wages are also repaid in some circumstances if the debtor’s attorney petitions the court in time.
It does not always protect the debtor. It is not necessarily permanent in some cases and it is mainly applied to assets that come under an exempt property.
- Can creditors fight the automatic stay?
The creditors are obliged to stop all collection efforts immediately they receive the information of the debtor’s case. To speed up the process you and your attorney should also help to notify your creditors or even the payroll department if required.
The creditors will try their best to fight the automatic stay but in almost all cases the court denies lifting the stay.
- What happens when automatic stay ends?
As the case ends it is also lifted but the wage garnishment does not usually start again as legally the court writes off all the debts possible. This writing off is called a discharge and the court provides the debtor with an order of discharge.
If you file bankruptcy again in the same year then maybe your garnishments will continue and in some cases, it might also happen that the stay only lasts for 30 days or is not there at all but your attorney can help you with that by asking the court for extending or putting the stay and help the debtor.
If you want to file for bankruptcy do not hesitate. It is all right to file for bankruptcy and start a new financial life. If you live in or near Los Angeles & Dallas, TX, contact Recovery law group-(888-297-6203).