Groups » Wage Garnishment – Does Bankruptcy Really Help?

One morning you get up and suddenly realize your wages are being garnished and there’s nothing in home left to eat. There’s not a single penny in your bank account. You could not have been in a worse situation than this. Well, yes it’s a harsh reality! You need to know that creditors can resort to all sorts of practices to get their money back and wages garnishment is one such method. Of course, the creditor needs to file a lawsuit against you and win the case for garnishing wages but then it still happens. Most debtors who fail to be present in the court for hearings often end up garnishing their wages. We have been hearing a lot about wages garnishment recently, so what exactly it is and how can one free oneself from it? Well, here’s your answer.

Wages garnishment means your employer passes on a specific amount or entire amount of your paycheck to your creditor to clear off the debt. There are various ways through which you can put an end to this problem with bankruptcy being the most common way out. You can file for bankruptcy following which there will be an automatic stay meaning your creditors cannot bother you with making payments. You, however, must not forget that bankruptcy also has its pros and cons. For instance, as you file for bankruptcy, it gets reflected in your credit report for years to come. So, before filing for bankruptcy, better look out for other alternatives. In case your situation is too bad and you cannot afford making payments, bankruptcy might be the only way out. Here are some things you still need to know –

Wage garnishment under chapter 7 bankruptcy

Chapter 7 bankruptcy often known as the liquidation bankruptcy helps you discharge debts completely and is usually filed by those who are in a complete financial mess. They have no means of paying back the debt owned. As soon as you file for Chapter 7 bankruptcy, creditors have to stop garnishing your wages. If you are in the worst situation, you can go for emergency filing. It does cost you more but then the results are very quick. As the case gets settled and your debt discharged, you no longer need to worry about wage garnishment. Under exceptional cases, if your debts are not discharged, the creditor has full rights to garnish your wages. Bankruptcy filings often get complicated and that’s why you should hire one of the experienced Denver based bankruptcy lawyers. He/she will help you understand the nitty-gritty of bankruptcy.

Wage garnishment under chapter 13 bankruptcy

If you do not pass the means test for chapter 7 bankruptcy, chapter 13 is your alternative. Herein, you have to make payments over a period of time. The moment you file for chapter 13 bankruptcy, wage garnishment stops. It, however, will not solve the problem entirely. You will have to work out to restructure your finance and repay debt over a period of time. It is important to remember that the trustee appointed (by the court) in this case might ask the court to enforce wages garnishment if you are late in fulfilling your obligations. Once the case is settled and if you some of your debts have been discharged, your creditor cannot garnish wages. If he/she still tries to threaten you, they are violating the bankruptcy code.


Bankruptcy, in a way, helps you end wage garnishment. It, however, is not a panacea for all your financial problems. Bankruptcy comes with its own disadvantages. You will have to be prepared to face its consequences. The best thing to do is consult a lawyer and analyze your situation to work out the best solution.

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