Upon Bankruptcy filing, whether it is Chapter 7 or Chapter 13, “Automatic Stay” comes into effect, which temporarily stops all collection attempts by your creditors until your Bankruptcy case is completed. Upon successful completion of your Chapter 7 Bankruptcy case, which usually takes about 90 days, you will receive a discharge. If the underlying debt of the wage garnishment is dischargeable, the wage garnishment will stop after you successfully completed your Chapter 7 Bankruptcy case because the underlying debt is eliminated. However, bankruptcy filing will not stop wage garnishment for domestic support like child support or alimony because it is a priority debt.
If you filed for Chapter 13 Bankruptcy protection, wage garnishment will stop for the duration of your Chapter 13 Bankruptcy plan while you timely pay your Chapter 13 Bankruptcy plan. Upon completion of your plan payments, if the underlying debt of the wage garnishment is dischargeable, the wage garnishment will also stop after you successfully completed your Chapter 13 Bankruptcy case. If the debt is non-dischargeable like child support and certain and / or recent taxes, it would be paid through your Chapter 13 Bankruptcy plan under a more reasonable and affordable payment structure.
To determine if Bankruptcy can stop your wage garnishment, call to schedule an consultation with Muoi Chea Bankruptcy Attorney at Sacramento, Stockton, or Fairfield California Office.
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