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Can I Stop a Wage Garnishment in Bankruptcy?

One of the most frightening aspects about being in financial difficulty is that you are going to lose some of your property, or your creditors are going to seize your income through a wage garnishment. Often it is when this happens that many debtors realize that they may have no other choice but to go 

One of the most frightening aspects about being in financial difficulty is that you are going to lose some of your property, or your creditors are going to seize your income through a wage garnishment. Often it is when this happens that many debtors realize that they may have no other choice but to go bankrupt. When their income is partially seized by a creditor it can affect the debtor’s way of providing the necessities of life for themselves and their family.

The good news is that even if a garnishment has been started that by filing for bankruptcy you may be able to stop this action immediately. In some cases the creditors responsible for the action will have to repay some of what they have taken back to you. This cease action is called an automatic stay, but it doesn’t always come into play.

It is not applicable to garnishments that have taken place because you were behind in your support or alimony payment. If you are granted an automatic stay this will remain in effect through the course of your bankruptcy, until it is resolved or dismissed without a discharge. If the debt was included in the discharge then even when your Kentucky bankruptcy is concluded this creditor cannot resume their garnishment actions. Sometimes garnishments begin before the bankruptcy courts have a chance to notify your creditors that you are filing for bankruptcy. You could tell your payroll department about your bankruptcy so they will not comply with the garnishment because of this.

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