Bankruptcy Stops Wage and Bank Garnishments
Posted By Jillian K. Aylward on May 2, 2010 4:35pm PDT
Filing bankruptcy will stop wage garnishments, even those that have been in process for some period of time. If you are facing a potential wage garnishment bankruptcy is an option. The automatic stay provided by the bankruptcy filing stops all wage and bank garnishments. The creditor will not be able to start the wage garnishment after the debt is discharged in bankruptcy. The only exception may be for ongoing child or family support ordered by a court.
Creditors can seek a wage or bank garnishment once a judgment has been entered in court for the amount sought. The judgment creditor will have to serve the employer and wait for an answer from the employer. Garnishments can start anywhere from 30-90 days after final judgment is entered. Wage or bank garnishments must be specifically requested by the creditor. The wage garnishment can be up to 25% of gross wages in Maryland.
Some other facts to consider:
- You don't have to file bankruptcy prior to entry of the judgment in court
- You'll need to file the bankruptcy and notify the creditor and/or their attorney's office of the bankruptcy filing and docket number to stop the wage garnishment
- You may be eligible to request return of garnished funds taken from you during the ninety (90) days prior to your bankruptcy filing
- There may be limitations on the amount you can seek returned to you --taken during the ninety (90) days prior to your bankruptcy--you will need to claim an exemption for the amount sought to be returned in your bankruptcy case
- Garnishments for social security and other government over payments, may be stopped by filing bankruptcy
A wage garnishment is one factor when considering to file bankruptcy. You may have other options including payment arrangements, motions to exempt your funds from garnishment and motions to reduce amount of garnishment. You and your attorney will review your total financial picture and all options, including your non bankruptcy options. Whether you live in Baltimore, Rockville, Montgomery County, Prince George's County, Silver Spring, Wheaton, Gaithersburg or anywhere in Maryland, The Aylward Law Firm LLC with over 22 years experience in bankruptcy law can help you consider if bankruptcy may be right for you. Contact a Maryland Bankruptcy attorney to discuss your options if you are facing a wage or bank garnishment.
Jillian K. Aylward
The Aylward Law Firm LLC