Steps to Stop Garnishment After Filing Bankruptcy
Garnishment is a legal process. The law allows a portion of your wages to be removed lawfully from a paycheck and given to legal creditors, such as children, spouses and credit card companies. Bankruptcy is a legal means of reducing debt or making debt repayment easier. Filing for bankruptcy may stop some forms of garnishment, such as mortgage and credit card bills.
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Instructions
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Start the process of filing for bankruptcy. Contact a tax attorney. A tax lawyer is necessary during the process of filing for bankruptcy to make sure that you are doing it correctly. If you do not do it correctly, you could wind up in needless legal and financial trouble.
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Collect all your financial documents. This includes any paychecks, tax payments, Social Security income, investment income, mortgages, car loans, student loans and obligations you have, such as child and spousal support. Make sure all documents have the correct information on them.
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Decide which type of bankruptcy you would like to file. The most common types of bankruptcy are Chapter 7 bankruptcy and Chapter 13 bankruptcy. Chapter 7 may be available as an option if you earn under a certain income level. The income allowed varies by state. You may also choose to file Chapter 13 bankruptcy. Chapter 13 bankruptcy is designed to help allow repayment of debt for those who are currently employed. Your tax lawyer will lay out the pros and cons of each choice. Complete all bankruptcy paperwork. The forms to file bankruptcy are collectively called a petition. Your tax lawyer will review them with you to make sure there are no mistakes. All debts must be listed on the form.
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File the petition. Bankruptcy petitions may be filed in person, electronically or by mail. Once the petition has been filed, you may be required to attend classes in credit counseling. You may also be required to work with an officer of the court for several years afterward. The court officer will supervise closely your financial decisions and may choose whether to approve them.
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Make sure all your creditors are notified. The court should send your creditors a form called a "Notice of Commencement." The Notice of Commencement will stop many forms of garnishment automatically. If it does not, contact the courts directly. Some forms of garnishment, such as child support payments and tax payments, cannot be stopped even with a declaration of bankruptcy.
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