Wage garnishment can make it difficult to cover basic expenses. If a creditor takes money from your paycheck, you may wonder if filing for bankruptcy can stop it. Chapter 7 bankruptcy often provides immediate relief by pausing most collection efforts.
How the automatic stay helps
Filing for Chapter 7 bankruptcy triggers an automatic stay. This court order stops most creditors from collecting debts, including wage garnishments. However, certain obligations, like child support and some tax debts, are not affected. Creditors must stop taking money from your paycheck as soon as the stay takes effect.
What happens to garnished wages?
Any wages taken before filing for bankruptcy typically cannot be recovered. However, future garnishments should stop once the automatic stay is in place. If a creditor recently took a significant amount, you may have options to recover some of it.
When garnishment can resume
Chapter 7 bankruptcy eliminates many unsecured debts, but some obligations remain. If you owe child support, alimony, or certain tax debts, garnishments may continue. Once the case is complete, creditors cannot garnish wages for discharged debts, but they can pursue collection on any new obligations you take on.
Filing for Chapter 7 bankruptcy can provide immediate relief from wage garnishment. The automatic stay prevents most creditors from taking money from your paycheck, and the discharge wipes out many types of debt. Understanding which debts qualify for discharge helps in deciding if bankruptcy is the right solution.