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Stopping wage garnishments

On Behalf of | Sep 14, 2021 | Blog

If you’ve filed for bankruptcy, your wage garnishments will stop,, at least temporarily. If you’re a Mississippi resident, here are some essential things you should know about repossession and wage garnishments and how bankruptcy can stop these processes so you can protect your paycheck.

Wage garnishments

Repossession and wage garnishments refer to a court order informing your employer to submit a portion of your paycheck to your creditor (wage garnishment), or having an item taken from you and returned to the creditor if you are unable to keep up with the payments (repossession). Garnishment can be used to collect several forms of debt, including medical bills, personal loans, credit card debt, student loans, taxes, and child and spousal support.

In most cases, your creditor must take you to court concerning the debt. Before a judge can order wage garnishment, you’ll have to attend a court hearing. Your debtor is required to inform you of the hearing and give you an opportunity to appeal the garnishment. If you owe taxes, student loans, or child support, a court hearing is not necessary.

Bankruptcy and wage garnishments

Some people who are facing debt issues including wage garnishments often consider bankruptcy to regain financial control. Once you file for bankruptcy, these will stop and creditors won’t be able to establish new garnishment orders during the time you’re in bankruptcy.

After you file, you’ll receive an automatic stay from the court. This keeps collection agencies, government entities, and creditors from coming after you for the debts you owe while your bankruptcy case is being processed. An automatic stay can give you some time to review your income, assets, and debts to come up with a reasonable plan to get your finances back on track.