What effect does filing bankruptcy have on a wage garnishment?
Full Question:
Answer:
Once any petition for bankruptcy is filed, the bankruptcy laws provide for an automatic stay which is an injunction against the continuance of any action by any creditor against the debtor or the debtor's property. See 11 U.S.C. 362. This means that creditors are no longer entitled to garnish wages for debts that existed at the beginning of the bankruptcy case. The only exception may be for on-going child or family support ordered by a court.
The automatic stay prohibits the beginning or continuing of law suits, any collection calls, repossessions, foreclosure sales, and garnishment or levies.
The automatic stay remains in effect until a judge lifts the stay at the request of a creditor;
the debtor gets a discharge; or the item of property is no longer property of the estate.
