Bankruptcy and Garnishments

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Bankruptcy and Garnishments

WIll garnishments that have been placed cease with a bk filing so that I will have income?

Asked on July 6, 2009 under Bankruptcy Law, Georgia

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

Once your case is filed, creditors are no longer entitled to garnish your wages for debts that existed at the beginning of the case except  for on-going child or family support ordered by a court, taxes, or student loans.

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

Yes, at least temporarily.  When you file a bankruptcy action, there is an automatic stay on all commercial collection actions, including wage garnishments.  The creditors are free to move for an exemption from the stay, but that is usually granted only to secured creditors like the mortgage company.


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