Wage garnishment can create a crushing financial burden. If a creditor is taking money directly from your paycheck, you may feel like you’re trapped with no way out. But there is a powerful legal tool that can help—bankruptcy. Filing for bankruptcy can not only stop wage garnishments immediately but also provide long-term financial relief.
In this blog post, we’ll explain how wage garnishment works, how bankruptcy can help stop it, and what you need to know about the process.
What Is Wage Garnishment?
Wage garnishment is a legal procedure where a creditor obtains a court order to collect a portion of your wages to satisfy a debt. Common types of debts that lead to garnishment include:
- Credit card debt
- Medical bills
- Personal loans
- Past-due child support or alimony
- Unpaid taxes
- Student loans (in some cases, without a court order)
In Florida, creditors (except for child support and certain federal debts) must first obtain a judgment against you in court before garnishing your wages. Once this happens, your employer is legally obligated to withhold a portion of your paycheck and send it to the creditor.
How Bankruptcy Stops Wage Garnishment
The moment you file for bankruptcy, the court issues an automatic stay. This stay is a powerful legal injunction that stops most creditors from continuing collection efforts, including:
- Phone calls
- Lawsuits
- Foreclosures
- Wage garnishments
Chapter 7 Bankruptcy
- Immediate Relief: The automatic stay goes into effect immediately upon filing.
- Discharge of Debt: If your wage garnishment is due to dischargeable debts like credit cards or medical bills, those debts can be eliminated, permanently stopping the garnishment.
- Time Frame: Most Chapter 7 cases are resolved in 3 to 6 months.
Chapter 13 Bankruptcy
- Repayment Plan: This form of bankruptcy allows you to reorganize your debts into a manageable 3- to 5-year repayment plan.
- Protect Wages: The plan can include a way to repay overdue amounts while stopping wage garnishment.
- May Help With Non-Dischargeable Debts: Chapter 13 can help manage debts like taxes or child support arrears by spreading out the payments.
What Happens After Filing?
Once the bankruptcy petition is filed:
- The garnishment must stop immediately.
- Your employer will be notified by the court or your attorney.
Are There Exceptions?
Yes. Certain types of wage garnishments cannot be stopped by bankruptcy, such as:
- Child support
- Alimony
- Some student loans (unless undue hardship is proven)
- Some recent tax debts
In these cases, bankruptcy may still help by freeing up income used to pay other debts.
Why You Should Act Quickly
If your wages are being garnished, every paycheck you lose puts you further behind. Filing for bankruptcy sooner can protect your income, give you breathing room, and stop the financial bleeding.
An experienced bankruptcy attorney can evaluate your situation, determine your eligibility for Chapter 7 or Chapter 13, and help you take back control.
Need Help? Contact The Printy Law Firm Today
At The Printy Law Firm, we help individuals and families in Florida stop wage garnishments and achieve financial relief through bankruptcy. If you’re losing sleep over your shrinking paycheck, it’s time to explore your legal options.
Call us today at 813-434-0649 Or schedule a consultation.
Let us help you protect your wages and rebuild your financial future.
