Will bankruptcy stop my wage garnishment? 15 Answers as of June 11, 2013

I have a debt consolidation attorney I pay to help me pay my bills. My check was garnished and they seem to think that’s okay, and told me to keep paying them. If I file bankruptcy and someone is garnishing my check will that stop? If I have something willed to me would that be taken away if those people pass away?

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Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
Filing for bankruptcy will stop a wage garnishment
Answer Applies to: South Dakota
Replied: 4/20/2011
Benson Law Firm
Benson Law Firm | David Benson
In general, the automatic stay in bankruptcy operates to halt all collection activities including garnishment.
Answer Applies to: Ohio
Replied: 4/8/2011
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
Bankruptcy will stop wage garnishment.
Answer Applies to: Florida
Replied: 4/7/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
That is the problem with debt consolidation programs. They do not protect you from anything. Make an appointment to see a bankruptcy attorney right away. A bankruptcy will stop the garnishment the minute it is filed. I see many clients who are in "debt consolidation" come in with lawsuits and garnishments. I believe people use debt consolidation because they are afraid of bankruptcy. The sign on my door reads, "Bankruptcy is Not a Bad word." What most people do not realize is that bankruptcy is not the stigma it used to be and it is most effective way to deal with your debt.
Answer Applies to: California
Replied: 4/7/2011
Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
Yes bankruptcy will stop the garnishment. Many of these debt consolidation operations are scams. You need to talk to a real lawyer in your own community. Someone whose law license is visible on the law; a place where you could send the cops if he is just stealing your money.
Answer Applies to: Virginia
Replied: 4/7/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Those are two completely different questions. Yes, a bankruptcy will stop any wage garnishment. The "automatic stay" prevents any creditor from taking any collection action on a debt. As far as whether an inheritance will be taken away, that depends on when you receive it and what exemptions you have available under applicable state (and sometimes Federal) law. If you become entitled to receive the inheritance prior to filing your case, or within 180 days after, then it is an asset which you must either exempt or possibly have to turn over to the Trustee in a Chapter 7 case. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
    Answer Applies to: California
    Replied: 4/7/2011
    Stuart Jon Bierman  Attorney at Law
    Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
    Usually, if a person files for bankruptcy the wage garnishment will stop. The question about the Will depends upon various factors and an attorney would need more information before he or she could provide an answer.
    Answer Applies to: New Jersey
    Replied: 4/7/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Bankruptcy protection immediately stops garnishment of a paycheck.
    Answer Applies to: Indiana
    Replied: 4/7/2011
    The Carmichael Firm
    The Carmichael Firm | Booker Carmichael
    Answer Applies to: Louisiana
    Replied: 6/11/2013
    Law Office of Asaph Abrams
    Law Office of Asaph Abrams | Asaph Abrams
    Bankruptcy-filing halts garnishments. See 11 USC 362. If a person passes away within up to 180 days after your filing, and wills you property, that property is part of the bankruptcy estate. See 11 USC 541.
    Answer Applies to: California
    Replied: 4/7/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Debt negotiation programs are essentially a rip off. Those programs are based on making you feel guilty for not being able to pay their debts and making you think that your credit will be restored if you enter into one of those programs. In fact, those programs make your credit worse and prevents you from getting rid of your debts quickly and restoring credit right away as you would be able to do after a Chapter 7 case. Those companies charge large fees for basically collecting your money for their fees first and then trying to settle your debts one by one as they accumulate sufficient money from your payments to do so. In the meantime the creditors get nothing and get tired of waiting and sue you. Then they obtain judgments against you which are more bad things in you credit history and you become subject to garnishment, bank account levies, liens on real estate and you may have to go to court to go through an examination of debtor and tell the creditor where you work, how much you make, where your bank accounts are, the property you own and whatever else they want to know so that they can collect. Even if those debt negotiation programs successfully setlle some of your debts then you get a 1099C from the bank and you have to pay income taxes on the amount of the debt reduction. That is called cancellation of debt income and it is taxable income that must be reported to the IRS and the California Franchise Tax Board. There are legitimate debt consolitation services that charge small fees and negotiate interest rate reduction, elimination of late fees and lower payment plans with the banks. Those companies are subsidized by the banks so they kind of work for the banks. Those companies do not promise you a reduction of the debt owed and the bank subsidizes them so you won't file for bankruptcy relief and discharge the entire debt. They are subsidized by the banks because the banks don't want to lose it all if you file for bankruptcy relief and are willing to give you a break on interest and late fees.

    These legitimate debt consolitation programs are only good for you if you are not eligible for bankruptcy relief because of too much income or too much property that you could not protect in bankruptcy. You need a consultation with a bankruptcy attorney first to find out if you would not be better off with either a Chapter 7 or Chapter 13 bankruptcy. Chapter 13 is a type of debt consolitation program where you pay only what you can afford according to the calculations of your income and expenses necessary and the rest of the debt is discharged. The debt consolitation (actually debt negotiation) attorney wants you to continue paying him so he/she is unlikely to tell you not to send him/her more money for him/her to get all the debt negotiation fees. A bankruptcy filing will stop the garnishment and you will be able to discharge the debt related to the judgment if you are otherwise eligible for bankruptcy debt relief. There is no reason for you to pay the judgment if you can discharge the debt in bankruptcy. If you inherit money within six months of the bankruptcy filing the amount you receive becomes part of the bankruptcy estate and can be taken to pay your debts. You are not entitled to receive any money from someone's death unless the person dies and the death has to occur within 6 months of the bankruptcy filing date. Therefore, there is a risk that if you are likely to receive an inheritance and become entitled to it within 6 months of the filing date the bankruptcy trustee can take that money to pay your debts. Unless that person who has willed your money is likely to die soon you should not worry about it. You should really have a consultation with a bankruptcy attorney to explore the possibility of a bankruptcy filing that will take care of your debts and move on to restore your credit quickly.
    Answer Applies to: California
    Replied: 4/7/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Yes, bankruptcy will stop a wage garnishment. Debt settlement firms often do not want you to file bankruptcy because they are collecting a monthly fee to keep you in the program. You should consult with a bankruptcy attorney to determine if bankruptcy is a better option for you.
    Answer Applies to: California
    Replied: 4/7/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    Filing a BK petition will stop a wage garnishment. If you received an inheritance within 180 days of filing BK, it becomes property of the BK estate.
    Answer Applies to: Washington
    Replied: 4/7/2011
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