“Some say he did the impossible!”
The Jere Beasley Report, August 2005
Wage Garnishment in a Bankruptcy
Bankruptcy and Wage Garnishment
Birmingham Legal Team helping you keep your paycheck in Hoover, Columbiana, Jasper or anywhere else in Alabama
Wage garnishment is a major way in which creditors attempt to satisfy their claims. Garnishment most often occurs when a court orders that the employer of a debtor take a percentage of the debtor’s earnings and remit it to the creditors before paying the debtor’s wages. Bank accounts can also be garnished when creditors obtain a court order to take money directly out of a debtor’s checking or savings account. Upon filing bankruptcy, the automatic stay immediately stops all garnishments from occurring until the bankruptcy proceeding is resolved. However, the best way to prevent a garnishment is to fight to stop it before it happens.
If a creditor is threatening to garnish your wages, then it is important that you consult an experienced debt relief attorney and explore your options. A large part of the debt solutions our firm offers are handled outside of the bankruptcy process. If we can help you rearrange your payment priorities and negotiate with the creditor without having to file bankruptcy, sometimes this is the best option. However, if it appears that filing for bankruptcy is the better route to take, the automatic stay will prevent the creditor from moving forward with the garnishment action. After a Chapter 7 liquidation, all the debtor’s debts are discharged (with the exception of non-dischargeable debts like alimony, child support, student loans, and back income taxes), thus most other types of garnishment actions won’t start again after discharge.
If you have been threatened by a creditor with wage or bank account garnishment, or if your wages are already being garnished and you want it to stop, contact the Birmingham Legal Team at Parkman White, LLP at 205-502-2000 today for a free consultation.