The automatic stay operates to put an immediate halt to all collection matters, including wage garnishments. As a practical matter, getting an employer to stop a garnishment can be a headache. However, with a competent attorney, you can have the garnishment stopped and any unlawfully collected funds returned to you within a short period of time.
It should stop immediately. Your attorney should have let the creditor and the bank or employer know. The creditor may return the money to you or to your lawyer or to the trustee. But no further money is allowed to be garnished once notice of bankruptcy is received.
Bankruptcy immediately stops wage garnishment. This is because of 11 U.S.C. Section 362 Automatic Stay. Still, you need to let the appropriate people know about the bankruptcy filing to stop the garnishment. Have your attorney prepare a Notice of Automatic Stay and file it in the court case in which you were sued and your creditor obtained a judgment and a wage garnishment order. He should serve a copy of this Notice of Automatic Stay on the counsel for the creditor and on the person or persons who handles payroll for your employer.
Legally it must cease immediately, but practically it is common for there to be one or two paychecks garnished after the bankruptcy. However, anything garnished after the bankruptcy will be reimbursed to you.
Filing a bankruptcy creates an automatic stay stopping wage garnishments. Be sure to provide notice of the bankruptcy to all parties to the garnishment.
pursuant to the bankruptcy automatic stay order, garnishments should stop immediately. If you send notice of the filing and case number to the garnisher and creditor, that should be sufficient.
A wage garnishment will stop immediately after filing bankruptcy if you have delivered noticed to your employers HR department prior to the deadline for issuing your next paycheck.
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