Bankruptcy filing stops creditor collection efforts from continuing. It will stop calls, letters, statements, judgments, garnishments, and more. The protection you receive from bankruptcy comes from the automatic stay.
Your creditors will receive notice from the court that your bankruptcy case has been filed. This court notice will list your name, the date your case was filed, your case number, and other information. The notice is not instant, it takes a few weeks to be sent to all of your creditors. This notice lets your creditors know that there has been a bankruptcy filed and they should stop collecting on the debt.
If you are actively being garnished before the bankruptcy is filed, your attorney will send immediate notice to the garnishing creditor. This way the creditor and their attorney can process the bankruptcy notice faster and stop your garnishment sooner. What if your garnishment hasn’t started yet, but you received notice of it starting prior to filing? Your attorney will send notice to the garnishment creditor and their attorney to prevent the garnishment from taking place at all.
What if your garnishment continues after your case is filed? If your garnishment continues after your case is filed, it could be as simple as your payroll processor did not get notice of the garnishment ceasing soon enough and already processed your paycheck. If you are garnished after your case is filed, from an unsecured creditor, you should be able to get all of those funds back. As this was a post-filing garnishment and you are protected by the bankruptcy automatic stay.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Garnishments are something no one wants to deal with, but bankruptcy is one tool that can help stop them. Visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!
