People contact me every day about the subject of wage garnishment. Either their paycheck is currently being garnished or they are afraid that it soon will be garnished by a creditor to whom they owe money.

For people already struggling with debt problems, having a paycheck garnished is a killer. It can mean not having enough money to make necessary living expenses. Like the rent or mortgage payment. Or the car payment. Or the electric, gas or water bill. Or to buy groceries or medicine.

These people want to know one thing. Will filing bankruptcy stop or prevent their paycheck from being garnished? In most cases the answer is “YES!”

You see, the second a bankruptcy petition is filed, an automatic stay goes into effect. And this automatic stay prohibits a creditor from taking any further collection activity without the permission of the bankruptcy judge. If the garnishment has not begun before your bankruptcy case is filed, then the bankruptcy will prevent the garnishment from beginning at all. If the garnishment starts before your bankruptcy case is filed, then the garnishment will stop immediately after your case is filed.

The automatic stay stops or prevents the vast majority of wage garnishments except for a few exceptions such as for child-support or other court-ordered domestic support obligations.

And what’s more, if a creditor has taken over $600 from your paycheck or your bank account within the 90 days before you file bankruptcy, this is known as a “preferential transfer” and the garnished funds can be recovered from the creditor.

If your wages are being garnished or are about to be garnished and you would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

The automatic stay is the best friend of a person who files bankruptcy.

Most people who consider bankruptcy are being hounded by bill collectors. The phone is ringing off the hook. Every day brings another collection letter. Paychecks are being garnished. The repo man is looking for their car. The mortgage company is foreclosing on their home.

It’s easy to understand how a person in this situation would be totally stressed out. If they’re married, more than likely the stress is affecting their marriage in a bad way. Financial problems are one of the leading causes of divorce in our society.

Most people considering bankruptcy have tried all other options available to them and they feel like they are at the end of their rope. They have no where else to turn for help.

If this describes how you’re feeling, then the bankruptcy automatic stay is ready, willing and able to come to your rescue.

The second your bankruptcy case is filed with the bankruptcy court, the automatic stay immediately takes effect to protect you from your creditors and bill collectors.

The automatic stay stops your creditors and bill collectors dead in their tracks. The automatic stay says that they must immediately stop all collection acitvity. They must stop calling you. They must stop sending you letters. They must stop all law suits against you. They must stop garnishing your paycheck. They must stop trying to repo your vehicle. And they must stop all foreclosure activity against your home.

If you are struggling with debt problems and being harrassed by bill collectors and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.