Should I File a Florida Bankruptcy to Stop a Garnishment?
Many times, clients come to me asking if they should file bankruptcy to stop a garnishment? This depends on many factors. What kind of creditor is garnishing your income? Are your wages being garnished or is it a bank account? How long has the garnishment lasted? How much do you have left before the debt is paid? Is the debtor a Florida resident and if so was the where was judgment entered against the debtor? Does the debtor financially support others? These are just a few of the questions an experienced attorney should be asking if they are capable of handling the debt.Lets start with the creditor. Is the creditor a government entity like the IRS or s student loan company? If so, filing bankruptcy is really not the solution to the problem. If it gets to that point, it is normally too late to do much about it unless the entity is willing to setup a payment plan.
If the creditor is a credit card or collection agency, the debtor can file bankruptcy to stop the garnishment. However, the debtor may or may not qualify for a chapter 7. If the debtor does not qualify, it may not be in the debtor's best interests, but there may be alternatives to bankruptcy. For example, if the debtor makes less than $750.00 per week (gross) and provides more than 50% of financial support for another human being and is a Florida resident, he or she may be able to stop the garnishment without a bankruptcy. The debtor could file a claim of exemption for "head of household" in the county in which the judgment was entered. Once the claim of exemption is filed, the debtor could then request a hearing. At the hearing, the debtor would need to prove that he or she does provide more than 50% of financial support for another.
If a joint/marital bank account is being levied against, was the debt incurred by only one spouse? If so, there may be protections against having that particular bank account levied. If both spouses incurred the debt, then the account can be levied. If not, then the legal doctrine "tenancies by the entirety" may apply. This protects marital assets where only one spouse incurred the debt. Lets assume the lien will stay in place on whatever property is being garnished or levied. How much of the debt remains? If the debt was once a $50k debt and it is now down to say $5k or even $10k, do you really want to file bankruptcy on it now after? The consequences of you filing bankruptcy at this point may outweigh the drawbacks of finishing paying the debt.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
