Having your wages garnished by a creditor is an absolutely terrible feeling. Fortunately, filing bankruptcy will invoke the automatic stay to stop any continuing wage garnishment.
Someone Has Sued You
If your wages are being garnished, you have probably been sued. It is VERY difficult to get a garnishment prior to obtaining a judgment, so if your wages or bank accounts are being garnished and you haven't a clue as to why, an alleged creditor filed a complaint against you in court in the county of your residence. If you did not file an answer (which generally requires the assistance of a lawyer), the creditor will receive what is called a "default judgment". If you actually defended the complaint by filing an answer and appearing at a hearing, then the creditor would have received a judgment on the merits. If that happened, you probably wouldn't be asking why your wages are being garnished, as garnishment is one of the most prevalent collection methods available to creditors.
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What's a judgment you may ask? A judgment is just a final decision by the judge assigned to your case. In other words, a judgment is the written order of the judge ruling on your case that you owe a liquidated amount of money to the creditor who sued you. Once the creditor secures this judgment, it can file a petition with the court to garnish your wages. Once this petition is granted, a judge (possibly a different judge than the one who ruled on your case) will sign an order that will be sent to the garnishee (the entity employing you or your bank) to hold a certain percentage of your wages to be sent directly to the creditor. While there are various methods to defend against a garnishment, bankruptcy is the most potent.
How Do I Stop My Wages From Being Garnished?
Filing either a Chapter 7 or Chapter 13 bankruptcy (or a Chapter 11 or 12, but these chapters are not for your typical consumer) will immediately stop your wages from being garnished. In fact, with the thoughtful use of your state's exemption laws, you may even be able to force the creditor who garnished your wages to return all or a portion of the money back to you. This is why it is important that you consult with a bankruptcy attorney when facing a garnishment of any kind. A bankruptcy petition preparer will only retrieve publicly available forms from the government's website and help you complete the necessary paperwork. They cannot give you legal advice; they will not attend the meeting of creditors with you; and they do not know the nuances of the bankruptcy code that will save you thousands of dollars and hours of grief.
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