Can Bankruptcy Stop a Wage Garnishment?
- Shawn A. Stack
- 2 days ago
- 2 min read
So let's just get the answer out of the way immediately.
Yes.
Bankruptcy stops a wage garnishment.
In fact, it's the only thing that can.
But here's the thing:
You shouldn't wait until your wages are being garnished before you take action.
It is always better to be proactive than reactive.
And filing bankruptcy to stop a wage garnishment is reactive.
I think it's best if we start by understanding what a wage garnishment actually is.
When you don't pay your creditors, they can go to Court and obtain a judgment against you. With that judgment they can then obtain a garnishee order.
A garnishee order is a Court Order that is served on your employer requiring that a portion of your wages be sent directly to the creditor instead of to you.
Your employer has no choice in the matter.
If they ignore the Court's Order, they can become responsible for the debt themselves.
So you can be sure they are going to follow it.
If you are already struggling to make ends meet while receiving your full paycheque, imagine the chaos when part of that paycheque never reaches your bank account.
Rent is still due.
Groceries still need to be purchased.
The power bill still arrives.
Life doesn't become less expensive simply because a creditor obtained a Court Order.
Some people respond by changing jobs.
Others start avoiding creditors.
Some simply hope the problem will somehow resolve itself.
It won't.
If you can't pay your creditors, ignoring them is not a strategy.
It's a delay.
And delays have a way of becoming garnishments.
But if you are already dealing with a wage garnishment, bankruptcy can stop it dead in its tracks.
The moment you file, the creditor loses the ability to continue enforcing the debt.
The garnishment stops.
Your wages return to you.
And for many people, that is the first time in months that they can begin to regain control of their finances.
The legal phrase is "Stay of Proceedings."
The reality is getting your paycheque back.
Comments