Kostopoulos Bankruptcy Law can help you stop wage garnishment by a creditor. Wage garnishment is when your employer withholds a portion of your paycheck to pay a creditor who owes you a debt. How do you stop California wage garnishment and get relief from debt collectors
The answer to this question is bankruptcy. Collection activities are stopped by an automatic stay, which is what you call a stop to collection. An automatic stay prohibits creditors from continuing wage garnishment and other debt collection actions. They may petition the court for relief to allow them to resume garnishment, but only if there is a good reason to do so. After your bankruptcy case is closed, creditors can no longer garnish wages if the debt has been discharged.
Some important information about garnishment of wages and bankruptcy:
- The automatic stay does not cover garnishments of wages that result in child support or alimony payments.
- You may be eligible to collect wages garnished prior to filing if you meet certain conditions
- If your bankruptcy case is denied and the debt that your wages are garnished for has not been paid, the creditor can continue wage garnishment
- Creditors may not be notified of bankruptcy filings in time to stop garnishments. You should alert your payroll department and local sheriff’s offices.
Contact Kostopoulos Bankruptcy law in Oakland to learn more about stopping wage garnishment. In a free consultation, we can help you explore your legal options.
Summarized from an article by Kostopoulos Bankruptcy Law.
