An excerpt from Bankruptcy: A New Beginning by Seth Hanson
Many people who approach me about bankruptcy are
under immediate threat of having their wages garnished. Others are already in the process of having their wages garnished. Some people have lawsuits that were recently filed against them or legitimate threats that a lawsuit is just around the corner. This is usually a very stressful situation. It can be absolutely paralyzing.
Fortunately, bankruptcy can provide some much needed relief. When you file for bankruptcy, the “automatic stay” immediately comes into force. The automatic stay is an injunction issued by a federal bankruptcy judge. It makes it illegal for creditors to take any action to collect on your debts. That means creditors can no longer call you, sue you, garnish wages, foreclose on your home, or repossess your car. It also means that any lawsuits filed against you must come to an immediate stop. The automatic stay is a protection provided by the federal bankruptcy statutes and is designed to give consumers breathing room while they straighten out their finances. The automatic stay applies in both Chapter 7 and Chapter 13 bankruptcy filings.
For more information contact your Stockton bankruptcy attorney.
Categorized in: Wage Garnishment