Will bankruptcy stop wage garnishment?

Yes, in most cases bankruptcy will stop wage garnishment in Wisconsin. In Wisconsin, wage garnishment is governed by state statute and allows creditors to collect money from a debtor’s paycheck before the debtor receives it. When someone files for bankruptcy, however, the court issues an order called the “automatic stay” that stops all forms of creditor collection including wage garnishment. This is true for both Chapter 7 and Chapter 13 bankruptcies, and the automatic stay remains in effect until the bankruptcy is finished. The automatic stay also stops any pending lawsuits against the debtor, stops the threat of foreclosure, and puts an end to debtor harassment and other collection tactics. Once the bankruptcy case is over, the debtor is able to start rebuilding their credit and finances without having to worry about wage garnishment. However, it’s important to remember that some creditors are not automatically stopped by the automatic stay, including student loans, child support, and alimony. It’s also important to note that the automatic stay is only effective as long as the bankruptcy filing is active. If the bankruptcy is dismissed, or if it is completed without discharging the debt, then wage garnishment may resume. For this reason, it’s important to consult a knowledgeable bankruptcy attorney before making any decisions.

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Will bankruptcy stop wage garnishment?

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