Making financial ends meet is difficult enough, but when you get behind on debt payments and a creditor secures a wage garnishment order against you, your financial circumstances can get particularly rough. Fortunately, you may be able to stop wage garnishment in its tracks by filing for bankruptcy. Those who qualify from the bankruptcy process will benefit from an "automatic stay."
When the automatic stay goes into effect, all debt collection related activities need to come to a halt for regarding debts covered by the bankruptcy -- that includes wage garnishment orders. Creditors and debt collectors also need to refrain from calling you and harassing you on the phone as a result of the automatic stay. Due to these benefits, getting approved for bankruptcy can offer immediate and life-changing benefits.
There are some situations in which wage garnishment cannot be stopped through bankruptcy, especially when the wage garnishment relates to:
- Unpaid taxes or tax proceedings
- Child support payments owed
- Criminal proceedings and judgments
- Loans against your pension payments
- If you've filed for bankruptcy too many times within a given period
It's important that you fully investigate whether you can stop wage garnishment by filing for bankruptcy before you actually file if your primary reason for doing so is to receive the wage garnishment benefit. Our Ohio bankruptcy law firm can help you evaluate your current debt and income situation -- as well as the wage garnishment orders in your case -- to determine your legal rights and options. The more you know before you file, the better the results you'll receive from your bankruptcy.