Detroit Bankruptcy Lawyer: Can Bankruptcy Stop A Garnishment?

     Most people don’t realize that filing bankruptcy can stop a garnishment. The conventional thinking is, "Well, they got the judgment in court, so nothing I can do". Nothing can be further from the truth. Bankruptcy can and will stop the garnishment, even after your creditor has received their judgment. Your Detroit Bankruptcy Lawyer can stop the garnishment and more.

Bankruptcy can stop the garnishment

     By operation of the Automatic Stay that comes into play after your case is filed, the creditor must cease their garnishment. It does not matter that they received their judgment before you filed your bankruptcy case. Because of the supremacy clause in the U.S. Constitution, Federal law will trump State law. Because bankruptcy is purely Federal law, their orders take precedence over your garnishment order. So once your case is filed, your attorney will notify the creditor that you have filed and demand that the garnishment must cease. Any funds taken from you after your case is filed must be returned to you. If the creditor refuses to stop the garnishment, the law provides a remedy in the form of sanctions against the creditor.

You can get your money back

     You read that right. In most cases, you can get your money back from the creditor by filing bankruptcy, either Chapter 7 or Chapter 13. The bankruptcy law deems you bankruptcy 90 days prior to filing bankruptcy. The law also states that if the creditor too more than $600.00 during that 90 period, you are entitled to get that money back. The key is the creditor must have taken more than $600.00. If they took $599.00, you get nothing back. If they took $601.00, then you get $601.00. But it must have been taken during that 90 period.

How do you get the money back?

     Simple. Once your case is filed, I will send a letter to the creditor demanding they return the garnished funds and provide proof of your filing. In most instances, they return the money to you. But if they don’t, I simply file an Adversarial Proceeding (like a lawsuit) in the bankruptcy court and ask for sanctions.

Bottom Line

     Don’t just think you lost if your wages are garnished. Your creditor can take up to 25% of your paycheck until the debt is paid. You have options. Call your Detroit Bankruptcy Lawyer at (586) 439-4297 (Macomb County) or (248) 581-0598 (Oakland County) and set up your free consultation. I will look at your situation and determine if you can get your garnished wages back and stop all future garnishments.

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