Will filing for Chapter 7 Bankruptcy stop wage garnishments?

Yes, filing for Chapter 7 Bankruptcy will stop wage garnishments. In Iowa, Chapter 7 Bankruptcy is available to individuals, couples, and businesses. When an individual or couple files for Chapter 7 Bankruptcy, they are protected from wage garnishments. This is because any wage garnishments that were made prior to filing the petition are stopped as soon as the case is filed. Moreover, creditors are then prohibited from proceeding with any wage garnishments in the future. In addition, Iowa law requires creditors to immediately notify employers if they intend to pursue wage garnishment against an employee. If a person is already undergoing wage garnishment while filing for Chapter 7 Bankruptcy, they should contact their creditor or the court to inform them of their filing status. Doing so will prompt creditors to cease wage garnishment actions. It is also important to note that the person should continue to make payments to creditors until the bankruptcy court has made a decision. In summary, filing for Chapter 7 Bankruptcy can be a great way to stop wage garnishments in Iowa. Once the petition is filed, creditors are legally obligated to cease all wage garnishment activity, thereby providing the debtor with some financial relief.

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Will filing for Chapter 7 Bankruptcy stop wage garnishments?

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