Can Bankruptcy Stop My Garnishment?

Consumers who have had difficulty making ends meet often find themselves on the wrong end of a court judgement after their creditors have taken them to court to pursue their debt. These judgements typically result in wage or tax-refund garnishment, often at the expense of the consumer’s ability to pay more pressing necessities, such as rent, a mortgage payment, or medical expenses.

That being the case, the first question I often hear from potential clients is, “Can filing for bankruptcy stop this garnishment?!?” Sometimes the garnishment has already begun, sometimes it is imminent, but it is always a great worry to consumers who do not have a penny to spare from their paychecks when it comes to simply keeping a roof over their children’s heads that month.

The good news is that, in nearly every case, the answer to their question is, “Yes. Filing for bankruptcy can stop this garnishment.” With some exceptions, such as garnishment for child-support or other court-ordered domestic support obligations, a bankruptcy will stop a garnishment at least for the duration of the bankruptcy proceeding and, upon successful discharge, permanently. Further, any funds garnished within a certain period prior to the filing of the bankruptcy petition must be returned to the debtor immediately upon receipt of the bankruptcy filing notification, so long as the garnishment is, for consumer debts, over $600.

If you are suffering from an income loss due to garnishment or will soon have your wages or other incoming funds garnished, please contact me at jhilla@aronofflinnell.com or (248) 977-4182 to schedule a free, initial consultation, and we will work together to secure the monthly income you depend on.