Wage garnishment is often one lead-up to filing for Chapter 7 bankruptcy. Garnishing someone’s wages is a legal way for lenders to collect money to pay debts. Many wage garnishments in Missouri require a judgment of the court before enacting them. Some federal agencies, like the IRS, have the ability to garnish wages without a court order (called an administrative wage garnishment).
In today’s blog from Groce & DeArmon, P.C., we explain continuous wage garnishment laws in Missouri.
Before 2015, wage garnishments in Missouri had a finite amount of time for lenders to collect money. Missouri law specified garnishments could last up to 180 days. After that time period was up, lenders had to go back to court to renew the garnishment for another 180 days, or however long it took to repay the debt.
Then the legislature amended the law to make it easier to collect debts while streamlining the process and reducing costs.
Continuous Wage Garnishment Now
Continuous wage garnishment means someone who owes a debt may have their wages garnished until the debt is paid in full or the relationship with the employer is terminated, whichever comes first.
The lender must still check in with the court every six months by giving updates on the remaining balance due from the person owing the debt. This doesn’t require a court hearing, just a submission of the necessary paperwork (which can be done electronically).
If the lender (called a garnishor) fails to make such updates, the court shall terminate the garnishment by its own motion or a motion of any of the parties represented in the garnishment case.
When the person in debt pays the full amount, the lender who filed for the garnishment reports to the court that the garnishment ceases to exist.
Groce & DeArmon, P.C. & Wage Garnishment in Missouri
If you are a resident in Springfield, Missouri, struggling from wage garnishments, the bankruptcy attorneys at Groce & DeArmon, P.C., can help. By law, filing for bankruptcy can stop wage garnishment until the matter is resolved.