How can I stop wage garnishment?
If you are facing wage garnishment from a creditor, Kostopoulos Bankruptcy Law wants to help you learn how to put an end to the financial strain and embarrassment it might be causing. Wage garnishment means that your employer is withholding a certain amount of your paycheck and providing the funds to a creditor to whom you owe a debt. How can you stop wage garnishment in California and find relief from debt collectors?
The answer is bankruptcy. When you file for bankruptcy, collection activities are halted by what is called an automatic stay. Creditors are prohibited to continue any wage garnishment or other debt collection actions under an automatic stay. If they wish to resume, they may petition the court to lift the stay, but only if they have a valid reason for doing so. If the debt is discharged through the bankruptcy filing, creditors may not continue wage garnishment after your case has been concluded.
Important notes about wage garnishment and bankruptcy include:
- Child support or alimony payments that are being garnished from your wages are not covered under the automatic stay
- Under certain conditions, you may be able to recover wages that have already been garnished within a 90-day period before filing
- If your bankruptcy claim is dismissed and the debt for which your wages are being garnished has not been discharged, the creditor may continue with wage garnishment
- There is a chance that creditors may not be alerted of the bankruptcy filing in time to halt garnishments, so you should also alert your company’s payroll department and your local sheriff’s office
To learn more about how to stop wage garnishment in California, contact our Oakland bankruptcy lawyers at Kostopoulos Bankruptcy Law. We can discuss your legal options in a free consultation. Get started by calling us today!