Creditors may garnish your wages by obtaining a judgment then executing a notice of garnishment. First, the creditor has to file a lawsuit and serve you with a copy of the summons and complaint. Then, the creditor must wait 28 days if you fail to file an “answer” with the court. After that period, the creditor may move the court for a default judgment. Once judgment is granted, the creditor merely must have knowledge of your place of employment in order to file the notice of garnishment. 25% of your gross earnings may be garnished. How can personal bankruptcy stop your creditors from garnishing your wages?

Once a Chapter 7 bankruptcy or Chapter 13 bankruptcy case is filed with the court, an Automatic Stay immediately goes into effect. The Automatic Stay prevents creditors from taking any further action to collect the debt. Garnishments must cease; foreclosures must stop; even harassing phone calls and letters will no longer be legal under the provisions of the Automatic Stay.

What if the creditor does not receive notice of the personal bankruptcy case filing before the next pay check is scheduled for garnishment? The Automatic Stay operates to require that creditors return any wages garnished after the bankruptcy case is filed.

What if my creditor decides to disregard the provisions of the Automatic Stay? Most creditors understand the provisions very well and are not likely to violate the Stay. Willful violation of the provisions can result in the creditor being responsible for paying triple damages and attorneys fees.

CONTACT A QUALIFIED ATTORNEY TO REVIEW YOUR CASE FOR FREE. FEEL FREE TO CONTACT ATTORNEY MIKE WELLER AT YOUR CONVENIENCE TO DISCUSS YOUR CASE FOR FREE. (937) 435-4555.