Will bankruptcy stop wage garnishment?

In Virginia, bankruptcy can stop wage garnishment. Before filing for bankruptcy, wages are usually garnished due to a court order or levy from a creditor. This can be one of the most aggressive debt collection tactics used by creditors. A creditor may take up to 25% of an individual’s wages, depending on the type of debt and state law. When an individual files for bankruptcy, an automatic stay is put in place. This puts a halt on all collection activities from creditors. This includes landlords, banks, and even the government. This means they are not permitted to garnish wages, contact the debtor, or initiate any other type of collection activity. This automatic stay is enforced until the individual’s bankruptcy case is discharged or dismissed. Once a person has filed for bankruptcy, they must contact their employer to stop the garnishment order. It is important to note that the creditor may still try to garnish the person’s wages, even after they have filed for bankruptcy. If this happens, they should contact their bankruptcy attorney right away to enforce the automatic stay. Overall, bankruptcy can stop wage garnishment in Virginia. An individual must file for bankruptcy and contact their employer to stop any garnishment order. After filing for bankruptcy, an automatic stay will be put in place, preventing creditors from taking any type of collection action. If the creditor does attempt to garnish wages, the individual should contact their bankruptcy attorney right away.

Related FAQs

Can I keep my car when filing for bankruptcy?
What is the bankruptcy automatic stay?
Can I get a loan after filing for bankruptcy?
What is bankruptcy?
How long does the bankruptcy process take?
What types of debt can be discharged through bankruptcy?
How much does it cost to file for bankruptcy?
Does bankruptcy eliminate liens?
What is the difference between a joint bankruptcy filing and an individual filing?
Is there anything I can do to rebuild my credit after bankruptcy?

Will bankruptcy stop wage garnishment?

Related FAQs

Related Blog Posts