Can my wages be garnished if I file for bankruptcy?
It is devastating to a family when a wage garnishment is taking money out of your household unexpectedly. Creditors can garnish up to 25% of your income! As soon as your bankruptcy is filed, the wage garnishment must stop immediately and your debts can be discharged. This is referred to as an “automatic stay”. Creditors will no longer be allowed to garnish your wages for credit card debt, medical bill debt, or deficiency judgments. In the State of Florida a creditor who obtains a judgment against you may garnish up to 25% of your net income after taxes and Social Security deductions. For people already struggling, a wage garnishment is something that can devastate them and drive them further into debt.
Once a judgment has been entered, creditors begin the collections process. In many cases creditors wait and file garnishments at a future time. If you owe debt a garnishment could potentially happen quickly or much later after a judgment is entered against you. Creditors obtain information pursuant to a court order which allows them to ask questions regarding your assets, employment, and bank accounts. If you have a judgment against you, speak with an attorney immediately to make sure your assets are protected and the appropriate paperwork is filed.
It is unfortunate to receive phone calls from prospective clients who have all their money seized from their bank account after they receive their paycheck and are left with no money to pay their bills let alone to file for bankruptcy. Worse of all, you cannot get that money back once it is garnished. Similarly, if someone’s wages are garnished and they are living paycheck to paycheck they become delinquent on their other bills. For these reasons, it is best to take a proactive approach in dealing with these issues and address them to keep your assets and prevent garnishment. Contact me today for an initial phone consultation at: 813-463-8000. Stop Wage Garnishment Today!