An overwhelming number of individuals live from paycheck to paycheck. If you are one of these people, any disruption in your wages can place you in a dire financial situation. To make matters worse, if you are facing a wage garnishment, it is possible that creditors can take as much as a quarter or more of your wages. Many people discover that wage garnishments to this degree make it difficult to pay the bills.
The Value of Automatic Bankruptcy Stays
Immediately after filing for bankruptcy, you will receive an automatic stay, which blocks creditors from garnishing your wages as well as continuing any collection actions against you. As part of the bankruptcy process, each creditor must be listed in filing documents so the court can notify them of the stay. It can take a week or longer for a creditor to receive notice to stop any and all collection activity. During this time, your lawyer will likely provide your employer with the important information about your bankruptcy and the wage garnishments you are currently enduring.
The Length of Automatic Stays
One of the most common questions that people interested in bankruptcy ask is how long they can expect an automatic stay to last. The answer is that in most cases, an automatic stay will remain in effect until a bankruptcy is concluded. If debts are discharged, a person will not have to worry about additional collection efforts. Courts will not allow an individual to indefinitely keep filing for bankruptcy to block collection activity, however. If you have filed for bankruptcy numerous times and do not have an intention of moving forward in your case, an automatic stay will either be limited or non-existent.
Wage Garnishments Before Filing for Bankruptcy
It is sometimes possible to receive some amount of garnished wages back after filing for bankruptcy. Any funds that are held by a clerk of the court at the time you file for bankruptcy can come back to you after initiating your case. Any funds that are garnished from a paycheck after filing for bankruptcy will be regained by the worker.
Limits on Wage Garnishment
A stay that occurs with a bankruptcy will give you collection and garnishment relief from various debts. A person will frequently need to create a strategy to repay these debts or the garnishment will likely continue after the bankruptcy process has concluded. If the garnishments include child support, a person will be required to continue making monthly child support payments. In regards to back child support payments, it is sometimes possible to obtain an automatic stay.
Speak with an Experienced Bankruptcy Lawyer
It is possible to stop wage garnishment as well as other creditor actions, and an experienced bankruptcy attorney can help you do so. At the Adam Law Group, we understand just how scary financial difficulties can be. Contact us today to schedule an initial free consultation during which time we will discuss your available options for relief.