If a creditor has obtained a judgment against you, the may ask the court to garnish your wages in order to begin collecting on their judgment. If you are facing wage garnishment it is important that you understand your rights. Bankruptcy will stop wage garnishment.
Many debts that are not paid end up being sold to debt collectors, these companies will buy up old debts for pennies on the dollar and will sue the debtors years after the initial default. Many debtors don’t realize their wages can be garnished until they receive a paycheck that has been garnished. They will look at their bank account on pay day and realize that some of their hard earned wages have been garnished. If you find yourself in this situation or believe that a creditor will try to garnish your wages you should contact a qualified wage garnishment attorney.
Any social security benefits cannot be garnished by ordinary creditors. If you are the primary breadwinner of your household and earn less than $750.00 a week, there are limits on how much of your wages can be garnished.
If you file bankruptcy any wage garnishment will immediately stop, and the creditor will be likely be barred from garnishing anymore wages while your bankruptcy case is pending. When you file bankruptcy you are protected from most collection activity by the Automatic Stay. The Automatic Stay operates a lot like an invisible shield that will protect you from most creditors.