Will bankruptcy stop wage garnishment?

Yes, filing for bankruptcy in Michigan can stop wage garnishment. Wage garnishment is a legal procedure wherein a creditor can take a portion of an individual’s wages as payment for a debt. In Michigan, creditors can garnish up to 25% of an individual’s wages or the amount by which an individual’s disposable income exceeds 30 times the federal minimum wage, whichever is lower. When an individual files for bankruptcy, an automatic stay is put into effect. This stay stops any debt collection activities, including wage garnishment. This stay will remain in effect until the bankruptcy is discharged or the individual dismisses the bankruptcy case. It is important to note, however, that wage garnishment can resume if it is part of a child support or alimony order. Child support and alimony payments are not dischargeable in bankruptcy, so they are not affected by the automatic stay. Additionally, if garnishment is a result of a tax debt, it can also still be collected despite the automatic stay. Overall, filing for bankruptcy in Michigan can stop wage garnishment on unsecured debts like credit cards and medical bills. However, it is important to review the details of the specific garnishment to make sure it is included in the stay. If it is not, then other legal steps may need to be taken to stop the wage garnishment.

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Will bankruptcy stop wage garnishment?

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