Being subject to wage garnishment can be very demotivating. It's likely that you will feel that you are no longer in control of your life and your finances because you work hard only to have a portion of your wages taken away from you before you receive them.
Luckily, there are ways to put a stop to wage garnishment in some circumstances. Filing for Chapter 7 bankruptcy is one of the most effective ways to end wage garnishment, and in addition to this, it can help you gain a fresh financial start.
How does Chapter 7 bankruptcy stop wage garnishment?
When you take action to file for Chapter 7 bankruptcy, an automatic stay is put into place. This automatic stay means that creditors no longer have the right to make debt collection attempts. As a result, wage garnishment will be halted by your creditors.
What are the exceptions?
Not all types of wage garnishment efforts are halted when bankruptcy is filed for. Typically, automatic stays apply mostly to private creditors. Therefore, if your wages are being garnished because you owe debts to the government in the form of unpaid taxes or student loan repayments, you will not be able to gain relief through these through bankruptcy. In addition, if your wages are being garnished because you owe unpaid child support, filing for bankruptcy will not be able to help your situation.
Filing for Chapter 7 bankruptcy may be effective in helping you solve a wide range of financial problems. However, it is important that you conduct thorough research into the entire bankruptcy process before making the commitment to file. An experienced attorney can help.