There a variety of circumstances that can cause wage garnishment, but when you have garnishment and mounting debts, can bankruptcy solve it? Everyone knows the rest of your debt will be wiped out by bankruptcy, but can wage garnishment be counted among it?
The good news is that bankruptcy can stop wage garnishment, but the bad news is that it doesn’t in every circumstance. When you file for bankruptcy all your debt collection is stopped by what is referred to as an automatic stay. When it goes into effect, no one can collect debt from you, and this includes garnishments.
However, there are some debts that can’t be included in bankruptcy filing. If whatever is garnishing your wages falls into this category, like, for example, unpaid child support or student loans, then the garnishment will continue after the bankruptcy filing is over and the automatic stay is lifted.
However, if your wages are garnished because of medical bills, personal loans, or even some types of tax debt, the wage garnishment will be wiped out by bankruptcy. Furthermore, if one creditor has garnished more than $600 in the past 90 days leading up to your wage garnishment, you may be able to get that money back as part of the bankruptcy filing.
If you are getting ready to file for bankruptcy and need legal representation or want to know if your wage garnishments will be included in the filing, contact us today. The Buettner Law Group can help your bankruptcy filing go smoothly and get the results you desire.