Dealing with wage garnishment can feel overwhelming. When a creditor begins taking money directly from your paycheck, it becomes difficult to keep up with everyday expenses, let alone catch up on past-due bills. Fortunately, bankruptcy offers a powerful tool for stopping garnishment in Minnesota: the automatic stay.
When you file either Chapter 7 or Chapter 13 bankruptcy, the court immediately issues an automatic stay. This is a legal order that halts most collection actions, including wage garnishment, bank levies, and creditor lawsuits. For most people, the relief is immediate. As soon as your employer receives notice of the bankruptcy filing, they are required to stop withholding money from your paycheck.
In many cases, filing bankruptcy can also help you recover garnished wages. If a creditor took more than $600 within the 90 days before you filed, and you have exemptions available, your bankruptcy attorney may be able to reclaim those funds as a preference payment. This is not guaranteed, but it can provide a meaningful financial boost during the bankruptcy process.
Minnesota follows both federal and state exemption laws, which allow you to protect essential income and property. Whether Chapter 7 or Chapter 13 is right for you depends on your specific situation. Chapter 7 wipes out many unsecured debts quickly, while Chapter 13 creates a structured repayment plan that can help stop garnishments while allowing you to catch up on secured debts like mortgages or car loans.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
If your wages are being garnished in Minnesota, it’s important to act quickly. Bankruptcy may offer immediate relief and a long-term path to financial stability. If you are facing a wage garnishment, reach out to Minnesota’s kindest and most helpful bankruptcy law firm at www.lifebacklaw.com.
