Does Bankruptcy Stop Wage Garnishment?
Bankruptcy does stop wage garnishment and discharge your debts once and for all. If your payroll department has been served with an earnings withholding order it is only a matter of time before your wages will be garnished. Schedule a FREE PHONE CONSULTATION or FREE OFFICE CONSULTATION and find out if bankruptcy is right for you. 1-877-963-9543
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Wage garnishment is one of the most crippling ways to enforce a judgment. A judgment credit may garnish up to 25% of your net income. Not the gross income, but net. If you are having difficulties each month already the garnishment of your wages will be very difficult. Another method of enforcing a judgment is levying on your bank accounts. One day you will have $2,500 in your bank account and the next day you will not. Your bank account was levied on and now your bank account is empty. A judgment creditor can continually levy on your bank accounts until the judgment is paid in full. A judgment creditor may also record the judgment with the county recorder’s office against any real property you may own in that county. When you try and sell the house or refinance the lien will need to be paid off at that time.
Whether you were just sued or know that a judgment was obtained against you already the bankruptcy laws can help. If you qualify to file a chapter 7 bankruptcy the garnishment of your wages will be stopped and the judgment discharged along with your other unsecured debts like credit cards or medical debts. As soon as the petition for relief is filed the automatic stay takes effect stopping all collection action including wage garnishment. Depending upon when the case is filed a portion or all of your garnished wages could be returned to you. So do not wait to find out if bankruptcy is right for you. All of our consultations are free and with experienced bankruptcy lawyers who have filed hundreds of bankruptcy cases.
With offices in Redwood City, San Francisco, San Jose, Fremont and Oakland we represent clients throughout the Bay Area including San Mateo County, Santa Clara County, Alameda County, Contra Costa County, Burlingame, Daly City, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Mateo, South San Francisco, Cupertino, Gilroy, Los Gatos, Milpitas, Mountain View, Palo Alto, Santa Clara, Sunnyvale, Concord, Danville, Martinez, Pittsburg, Pleasant Hill, Richmond, San Pablo, San Ramon, Walnut Creek, Berkeley, Dublin, Hayward, Livermore, Pleasanton, San Leandro and Union City.