Can Chapter 13 Stop Wage Garnishment?
Chapter 13 bankruptcy puts a stop to most debt collection efforts, giving you a chance to regroup and make payments on what you owe. But if your creditors are trying to garnish your wages to collect, you might be wondering how a Chapter 13 filing will impact that process. In some cases, Chapter 13 will stop wage garnishment, but not always.
Wage garnishment is never an easy process, but the Craig Black Law Firm can help. When you call my office, I'll personally answer your call and discuss your case with you. Contact me at 678-888-1778 or by filling out this confidential form.
What Is Wage Garnishment?
Wage garnishment is a court-ordered process where creditors collect debt through your employer. Your employer is legally required to withhold part of your wages to pay the debt.
Since creditors need to go through the courts for wage garnishment, it typically only applies to government debt like back taxes or unpaid student loans. Unpaid court-ordered debts like child support, alimony, and legal judgments may also be collected through wage garnishment.
Automatic Stays and Wage Garnishment
When you file for Chapter 13 bankruptcy, the court issues something called an automatic stay. This prohibits creditors from taking action to collect on what you owe. Once an automatic stay is issued, current collection efforts will be put on pause, including foreclosures and repossessions.
In some cases, an automatic stay halts current wage garnishments, as well as stopping any future attempts to garnish your wages. Any debts that were previously being collected through your wages will be considered as part of your repayment plan. The stay will remain in place until your debt is discharged or the court rejects your request for bankruptcy protection.
What Debts Aren't Exempt from Automatic Stays?
Although bankruptcy laws vary from one state to the next, one thing remains constant: certain debts aren't eligible for bankruptcy discharge. That means that throughout the process, you'll need to continue to pay those bills. It also means that if your wages are being garnished, they'll continue to be garnished for those expenses.
These nondischargeable debts include:
- Mortgage debt
- Child support
- Alimony
- Some tax debts
- Government-funded student loans
- Certain court judgments
Even some dischargeable debts might continue to be collected through your wages after the stay is in place. If the creditor can successfully argue to the court that your wages should continue to be garnished, you might find yourself continuing to see it coming out of your paycheck.
Legal Help with Chapter 13 Bankruptcy
If your wages are being garnished, Chapter 13 bankruptcy may be able to help. Not only could it put a pause on collection efforts, but it also could help you work out a repayment plan that will reduce the debt and help you pay it down. Give me a call at 678-888-1778 or fill out this form to find out how the Craig Black Law Firm can help.
META TITLE: Chapter 13 Wage Garnishment | Craig Black Law Firm
META DESCRIPTION: A Chapter 13 filing puts an automatic stay on debt collection, but does that include wage garnishment? Here's what you need to know.