A debtor can fill bankruptcy to stop wage Garnishment. In some cases, filing bankruptcy can be used even to reclaim some garnished wages. However, there are some exceptions in such cases. When filled in an appropriate manner, bankruptcy has helped many debtors protect their wages.
The procedure for filing bankruptcy starts with a pre planning phase. This stage involves determining the type of filing that will be adopted such as an individual or a group filling. At this point, the debtor should take his time to learn all the bankruptcy filing procedures to eliminate possible sabotage cases. The next step will be gathering and filing documents. The debtor should know all the documents required where to look for them and other additional procedures required in filling the forms. The last part involves determining whether an attorney is needed. In case, the attorney is necessary, the debtor should contact the best team that could help his/her situation.
Filing bankruptcy brings into effect the automatic stay that stops collections by creditors. Wage Garnishment being a form of collection, as well, is stopped. Creditors can only continue with their collection by requesting banks to uplift the automatic stay. The court, on the other hand, will only uplift automatic stay, when beyond reasonable doubt, deems such request necessary. Automatic stay, however, never applies on domestic support obligations. It cannot be applied, for example, in alimony or child support. Such debt, according to a court ruling, is a priority debt that in no way can be affected. Domestic support Garnishment is immune to the automatic stay.
When a case is dismissed by the court, when the court orders a discharge or at the uplift of the automatic stay, an automatic stay stops functioning and collection starts. However, if the discharge is offered obligatorily such as in case of credit card debt the creditor is never allowed to assume collection even after the discharge. In case, the case is dismissed before discharge, the creditor is allowed to proceed with collection soon after the dismissal.
Wages gathered prior to filing bankruptcy can be recollected, however, only when some set conditions are met. There must be exception covering the wages. Additionally, bankruptcy must be filled within 90 days of collection. Finally, the aggregate value must exceed $600. If the conditions are met, a claim can be filed and through court order the collection will be returned. If the case is presided over by an attorney, the attorney's competency and the sum under question will determine court decisions.
Based on the debtor's state, a court may order an automatic stay immediately, or takes its time evaluating the matter. For a quick response, when filing bankruptcy, all the creditors must be listed, so that the bank notifies them immediately. Timing should be appropriate, that allows the court to make contact with all the creditors before they move into action. However, for immediate action, notification should be sent to the payroll department of the debtor company. On the other hand, the local police or levying authority, who collect garnished should be notified in advance.
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