If I file bankruptcy, do any garnishments stop?

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If I file bankruptcy, do any garnishments stop?

Asked on August 15, 2013 under Bankruptcy Law, Oklahoma

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Yes, they do. Once a bankruptcy is filed, something known as the "automatic stay" goes into effect. What this does is to cause all collection activity against the debtor to stop. Basically, what you'll have to do is to get a case number and notify your employer. However, there is more to it; there are specific procedures for doing all of this. You can either consult with a bankruptcy attorney for more information or google the information that is specific to your state. Assuming that the underlying debt for the garnishment is discharged, then the creditor can take not further action against you.

Note: The automatic stay doesn't apply to child support or alimony.  These are "priority debts" that are unaffected by the automatic stay since they cannot be discharged in bankruptcy. 

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

Most garnishments stop immediately upon notice being given to the employer as well as the creditor.  When a case is filed, electronically in most areas, the Clerk of the Court automatically generates a document entitled" Notice of Bankruptcy Filing."  This document can be downloaded from PACER innediately after the case is filed.  If you don't have access to PACER, call the Clerk of the Court in which the case was filed for information on how to receive the document.  If your case was filed by an attorney, ask the attorney to fax or e-mail to your employer And the creditor.

Approximately 5-7 days after filing, a written notice entitled Notice of Commencement of Case will be mailed to all parties listed in the schedules, but not your employer who is garnishing the wages.


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