QUESTION
Once I file my chapter 7 bankruptcy paperwork, will the automatic stay immediately halt my wages from being garnished?
Asked on May 06th, 2014 on Bankruptcy - Michigan
More details to this question:
I have recently started to be garnished 20 percent of my paycheck to a credit card that just got a judgment against me. Is there something I can show my employer right after I file that will halt the garnishment of my next paycheck?
10 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
at
Law Office of Susan G. Taylor
Update Your Profile
Provide your notice of bankruptcy, the document with the emblem. And immediately notify the judgment creditor's lawyer. If you're in Texas, there are few things worthy of garnishment. Odd that you were ever garnished
Answered on May 27th, 2014 at 3:08 AM
Bankruptcy Attorney serving Tacoma, WA
at
Brown & Seelye Attorneys at Law
Update Your Profile
Ask your attorney to fax a notice to your employer after you file. Most attorneys have a form they can fax over to stop the garnishment once you are filed.
Answered on May 08th, 2014 at 6:13 PM
Show your employer the notice of creditors' meeting. It will have your case number and the date of filing. Your employer can make a copy of same, and answer the garnishment form.
Answered on May 07th, 2014 at 2:58 PM
Although it is called an "automatic stay," the reality is that nothing happens automatically. Showing your employer your bankruptcy papers may not be sufficient to stop the garnishment. After all, the employer must pay the garnishment if they incorrectly discontinue your garnishment. When I represent a debtor, I notify all parties, including the local court that issued the garnishment writ and I generally know the creditor's attorney sufficiently well to persuade him to obtain an order stopping the garnishment.
Answered on May 07th, 2014 at 1:57 PM
Debt Relief Attorney serving Anaheim, CA
Partner at
Marlin Branstetter Attorney at Law
The filing requires creditors to immediately discontinue collection efforts. Employers will sometimes not stop withholding until they receive notice from the creditor. Be sure the creditor receives notice as soon as possible.
Answered on May 07th, 2014 at 11:47 AM
bankruptcy Attorney serving Paul, ID
at
Paul N. J. Ross Law, PLLC
Update Your Profile
For the most part, yes. If you file your bankruptcy today and your payroll department ran payroll yesterday, but the checks go out tomorrow, that money will still be garnished. You should get it back, but it will still be withheld usually. Monies taken after the filing of bankruptcy are pulled in violation of the automatic stay and have to be returned (at least in the 9th Circuit). But all future pay checks should not have those garnishments (unless they are for child support or some other type of protected garnishment).
Answered on May 07th, 2014 at 11:47 AM
Your bankruptcy attorney should notify your employer about the filing. If you did the filing yourself you should give them a copy of the document titled "Voluntary Petition."
Answered on May 07th, 2014 at 10:13 AM
Yes, provide your payroll person the official notice of bankruptcy filing available on PACER or from the court clerk.
Answered on May 07th, 2014 at 10:04 AM
Bankruptcy Attorney serving Hampton, VA
at
Haven Law Group, P.C.
Update Your Profile
Yes, bankruptcy will stop the garnishment.
Answered on May 07th, 2014 at 10:02 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Your bankruptcy filing.
Answered on May 07th, 2014 at 7:33 AM