For those who have looked into it, they know that wage garnishments set in place by their creditors can be removed when they file bankruptcy. At very least, once the automatic stay goes into place, they won't have to pay their wage garnishments any longer with the exception of child support and alimony payments that are immune from such exemptions.
However, what about when the automatic stay is over? This happens when your debts are discharged, your case is dismissed without discharge, or the courts lift the stay. If you receive a discharge of debts the garnishments will only be stopped if the underlying debt that is responsible is also removed. After the debt is discharged, creditors can no longer garnish your wages, nor will they have a reason to do so.
Unfortunately, if the automatic stay is lifted by the court or your case is dismissed without a discharge, then as soon as that order is put in place, your wage garnishments can and likely will resume. However, it is not often that bankruptcy cases are dismissed like this, so in most cases, bankruptcy is a good way to get rid of unreasonable garnishment. Furthermore, if you meet certain requirements, you may be able to get back some of those wages. Typically you can get back wages garnished up to 90 days before filing if they amounted to more than $600.
If you are stuck in low income hell due to wage garnishment and believe that bankruptcy can be your way out, contact us today. As expert bankruptcy lawyers, the Law Offices of James C. Shields can help you get a favorable outcome.