How Can I Stop A Wage Garnishment? - Upsolve

How To Stop Wage Garnishment With Bankruptcy

Here are five steps to take to stop wage garnishment immediately after filing bankruptcy.

Step 1: File Your Bankruptcy Petition

Wage garnishments have to stop immediately once your case is filed but you should allow time for the creditor to provide your employer with the necessary paperwork to actually cause the stop.

If you file your case the day before your next payday, chances are you're paycheck will still be garnished, as the payroll has already been processed. However, you'll get that money back.

Step 2: Call the Creditor's Attorney and (or) the Creditor That Sued You

 Call the attorney that sued you on behalf of your creditor. Tell them that you've filed bankruptcy and give them your case number. Let them know that the automatic stay protects you from any future wage garnishment. This puts the ball in their court to take the steps necessary to make sure you're not garnished again going forward.

Make sure you have the case number from the lawsuit handy when you call them, so they can look up your file easily. You can also call the creditor or the collection agency, but if they have legal representation, there's no need to take this extra step.

Step 3: Let the Sheriff's Office Know (if they're involved)

If your wage garnishment involved the sheriff's office, make sure you notify them about your filing and provide them with your bankruptcy case number. 

Step 4: Let Your Employer or Payroll Company Know

Keep in mind, however, that they're processing the garnishment based on a state court order telling them to do so. While some employers are able to put an end to the garnishment as soon as they are aware a bankruptcy case has been filed, many wait until they get official word from the court that entered the garnishment order in the first place.

This makes sense, as they don't want to run afoul any state court orders, but it means that you'll need to stay on top of them and the creditor's attorney to make sure they get the stop order from the state court quickly enough to stop the garnishment before your next payday.

Step 5: Follow Up With Your Employer/Payroll Department

Don't wait until the next payday to check the status to confirm that the garnishment has been stopped. Instead, keep in close contact with someone in your payroll department and — if they're not hearing from the creditor's attorney — follow up with the creditor's attorney again. It's their job to make sure your garnishment stops. Don't be afraid to call and remind them of that if it seems like they're dragging their feet.