Many people file bankruptcy because a creditor has a garnishment.
A garnishment is a court order to deduct a portion of a debtor’s wages to pay a creditor who sued the debtor and obtained a judgment.
Garnishments are stopped though the instant a bankruptcy case is filed, regardless if it is Chapter 7 or Chapter 13. In my Chicago bankruptcy law office, we send a fax notice to the creditor’s attorney as to the payroll department or HR supervisor.
Contrast this with a wage assignment. A wage assignment is where you authorize the creditor to deduct a payment from your wages if you don’t make voluntary payments. The most common are from payday loans. These can be stopped instantly, before bankruptcy, under the Fair Debt Collection and Practices act and the Wage Assignment Act under the Federal Trade Commission rules.
Contact your attorney, or call us if you need one as soon as possible to help with any of these types of matters. We are here to help! 312-427-7400