Filing for bankruptcy will stop wage garnishment for at least the period of time that your case is reviewed by the bankruptcy court. As soon as you file for bankruptcy and your petition is accepted, the court will put an automatic stay on all of your unsecured debts. This means that if your employer has imposed a wage garnishment on your earnings to pay off an unsecured debt like a credit card debt or a home loan, your employer will have to stop garnishing your wages until your bankruptcy case is finished.
If you file for Chapter 7 bankruptcy, it’s most likely that your wage garnishment will stop forever, because your debts will be discharged at the end of your bankruptcy case. If you file for Chapter 13 bankruptcy, you might also be able to stop wage garnishment. In Chapter 13 cases, instead of having your wages garnished, your San Diego bankruptcy lawyer will work with your creditors and the bankruptcy court to create a repayment plan that will last for three to five years. When your repayment plan is set into motion, you will make one payment to a court-appointed bankruptcy trustee on a regular basis and the trustee will then distribute that payment amongst your creditors.
There are certain situations in which you cannot stop wage garnishment with bankruptcy. For example if you are faced with wage garnishment because you owe secured debts such as student loans, back taxes, or child support payments, bankruptcy will not eliminate your debts. Even during your bankruptcy proceedings, you must continue to repay secured debts.
Get Help from a Knowledgeable San Diego Bankruptcy Lawyer
If you’re considering filing for bankruptcy in order to stop wage garnishment, speak to a San Diego bankruptcy lawyer to learn more about your legal options and to find out if bankruptcy is the best choice for your situation. Attorney Scott Orona has over 20 years of experience helping people in San Diego understand and get through the bankruptcy process. During a free one hour consultation, Attorney Orona can answer your questions and provide you with legal advice regarding the best ways to get back on your feet financially. Call 619-306-7627 today to learn more about Scott Orona’s experience handling over 8,000 bankruptcy cases in the state of California and how he can be of service to you as you address your debts.