Can a Florida Bankruptcy Stop a Wage Garnishment?
An important question for those considering bankruptcy is how a filing will affect any existing wage garnishments. Wages can be garnished by employers for a number of reasons, including unpaid judgments, unpaid loans and domestic support obligations like child support or alimony. In a garnishment situation, a portion of the employee’s wages are held by the employer until the obligation is satisfied.
The short answer is that, yes, a bankruptcy filing under Chapter 7 or 13 will stop wage garnishments, but not under every circumstance. When one files for bankruptcy, an automatic stay goes into effect, meaning that all collection activities against the debtor must stop immediately, including wage garnishments. The garnishments will not restart and those debts will be dealt later with in the bankruptcy proceeding.
Filing for bankruptcy under Chapter 7 or Chapter 13 will help you with many kinds of debts, including unsecured debts such as credit card debt, medical bills and loans in which no collateral was given. However, under federal law there are certain types of debts which are not dischargeable in bankruptcy, meaning that they will not be erased under Chapter 7 or reorganized under Chapter 13.
These non-dischargeable debts include student loans and domestic support obligations, among others. So, if your wages are being garnished because of these types of debts, the garnishments will continue after filing for bankruptcy.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
