If your wages are being garnished because you owe a creditor, you may be able to stop the garnishment or even recoup some of your losses by contacting a bankruptcy lawyer. However, there are a few exceptions that may apply to your request. Today, Groce & DeArmon discuss ways in which a bankruptcy lawyer can prevent wage garnishment — as well as situations that are unavoidable. Read on to learn more.
Filing For Bankruptcy Creates an Automatic Stay
When you contact a bankruptcy lawyer to begin a chapter 7 or chapter 13 bankruptcy, an automatic stay goes into place that will prohibit and stop most forms of collection by your creditors — including wage garnishment. If one of your creditors wants to resume their collection activities, they must ask a judge to lift the stay — and provide a valid reason.
A creditor wanting to simply resume garnishment is not a valid reason, for instance. If you are experiencing wage garnishment that is preventing you from staying afloat financially, a bankruptcy lawyer may be the solution. However, not all forms of wage garnishment are preventable with bankruptcy.
Exceptions to an Automatic Stay
There is a form of wage garnishment that is not impacted by the automatic stay. This comes in the form of priority debts, which are unaffected by bankruptcy. Priority debts include domestic support obligations such as child support or alimony. If your wages are being garnished because of priority debt, speak with a bankruptcy lawyer to learn what options you have.
Recovering Wages Garnished After Filing for Bankruptcy
In some situations, you may be able to recover some of your wages even if they were collected before you filed for bankruptcy. On occasion, clients can get wages returned within the 90 days prior to filing if your wages garnished were over $600 and you have enough exemptions to cover the amount.
In order to begin this process, your bankruptcy lawyer must file a complaint, requesting that the creditor return the garnished wages. When you visit your bankruptcy lawyer, it is a good idea to discuss whether or not this option makes financial sense.
Related Post: What Are the Wage Garnishment Laws in Missouri?
Is Wage Garnishment Causing You Financial Problems?
Contact the bankruptcy lawyers at Groce & DeArmon, P.C. to discuss bankruptcy as a possible solution. Our team is experienced and willing to fight for your financial well-being. Contact us today for a free consultation. Call us today at 417-862-3706 or our toll-free number 1-800-640-3706. We look forward to working with you!