We are bankruptcy attorneys in Middletown, Ohio. We have been in practice for nearly 30 years serving the community.
If your wages are being garnished by a creditor you can stop this garnishment by filing for bankruptcy protection. Once you file for bankruptcy the automatic stay goes into effect that prohibits and stops all collection efforts by creditors. This means that wage garnishments are also stopped as long as the stay is in effect. If the garnishment continues after the case is filed all funds must be returned to you. If for some reason the creditor would want to continue the garnishment they would have to request relief from stay from the court, this would only be granted if the creditor has a valid reason for doing so. An unsecured creditor such as a credit card or hospital simply wishing to resume a wage garnishment is not a valid reason for the court to lift the stay.
The automatic stay does not apply to domestic support obligations, such as child support or alimony. These are considered priority debts that are unaffected by the automatic stay and cannot be discharged through bankruptcy. Domestic support obligations are not able to be discharged through bankruptcy.
The automatic stay end when you receive a discharge, your case is dismissed without a discharge or when the court lifts the stay. If you receive a discharge and the underlying obligation for the wage garnishment (such as credit card debt) was included in the discharge, the creditor cannot resume the garnishment to collect the debt after bankruptcy,
When you file bankruptcy you are required to list all your creditors so they can be notified of the bankruptcy. However, there is a chance that creditors may not be alerted in time to put a stop on the garnishment after they case is filed, so any funds that are garnished after the bankruptcy filing until the garnishment is released will be returned to you.
If you are struggling with debt or a wage garnishment you should contact our office for a free consultation. At this consultation you will be able to sit down with one of our experienced attorneys and discuss your individual situation. We offer the free consultation, fair fees and monthly payment plans.
For more information check out our website at www.middletown-bankruptcy.com.
Contact your Middletown, Ohio bankruptcy attorney today!