How it Works


How Bankruptcy Can Stop Garnishment?


Are you having trouble paying your bills? If you are falling behind in your debts, the last thing you want is less money to take home at the end of the day. It is possible that a creditor could obtain a court order to garnish your wages.  In other words, they can take money right out of your paycheck to pay your debts.  In some cases, wage garnishments may take more than half of your paycheck.


Wage garnishment is a drastic step, often used by creditors that have no claim to any of your property. Without any property or collateral to back up your credit card purchases or medical bills, a creditor may file a lawsuit against you and ask the court to grant their motion for your wages to be garnished.  Depending on your debt, the court will assign a percentage of your paycheck to be automatically deducted and sent to the creditor. Oftentimes up to 25 percent of your disposable income could be taken away from you. In cases of tax debt, much more could be taken out.


Wage Garnishment Laws


It’s possible that your spouse’s wages be garnished because of your debts.  In California, married couple’s debts and assets are considered community property. In this case, your spouse’s wages might be at stake even if the credit card and the debts are under your name.


As required by law, your employer must comply with the court order, and will be unable to stop wage garnishment. However, you are also protected by the same law, which says that an employer may not fire you because your wages are being garnished.


Wages are often garnished for the following reasons:


  1. Unpaid state and federal taxes
  2. Delinquent child and spouse support


Wage garnishment will only stop if:


  1. Your debts are settled
  2. Automatic stay in bankruptcy stops the action


Bankruptcy’s Automatic Stay Can Keep Creditors Away from Your Paycheck


If you are already facing financial disaster, garnishment can make it harder for you to support yourself and your family. By filing either Chapter 7 or Chapter 13 bankruptcy, you have the power to stop the action.  Both Chapter 7 and Chapter 13 bankruptcy may stop wage garnishment.  In the case of a Chapter 13 bankruptcy, the garnishment will stop for several years as you work through your repayment plan. In a Chapter 7, each state’s exemptions provide protections against wage garnishment.


How Quickly Can Bankruptcy Stop a Wage Garnishment? Immediately! Filing bankruptcy will stop your wage garnishment before your next payroll is processed.


Can Bankruptcy Stop Any Type of Wage Garnishment? Bankruptcy stops garnishments based on consumer debt. This includes debt for 2nd mortgages, credit cards, personal loans, vehicle loans and medical bills. Garnishments based on child support will not be stopped by bankruptcy.


We Can Help You Stop Garnishment


Don’t just sit there, relax, and watch your money to drift away. Filing bankruptcy is designed to stop creditor harassment, including wage garnishment, and settle your debts.


At Lozano Law Offices we help clients stop wage garnishments and tax liens by filing either Chapter 7 or Chapter 13 bankruptcy. Attorney Crispin Lozano has extensive experience helping people facing financial hardships throughout Northern and Eastern California keep their hard-earned money and find the debt relief they deserve. The sooner you take action, the better off you will be. Let us help you!


Call us at (510) 538-7188 or contact us online to schedule a free initial consultation.

Toll Free 1-877-4LOZANO for free consultation or Schedule an Appointment