What the automatic stay does to a garnishment
Filing a bankruptcy petition triggers an automatic stay, which generally requires creditors to stop collecting, including through income executions and garnishments based on judgments. The same is usually true for administrative wage garnishment on many federal student loans and for most tax levies, though each has its own mechanics. Withholding for child support and alimony is treated differently and normally continues during the case. The stay takes effect on filing, but payroll departments act on notice, so the creditor, the enforcing officer, and the employer typically need to be told about the filing quickly. A deduction may still come out of a paycheck that was already being processed.
Money that has already been taken
Wages garnished before the filing are not always gone for good. Depending on when they were taken and how much was involved, some amounts may be recoverable in the bankruptcy case, and exemptions may let you keep them rather than see them pass to the trustee. Whether that is worth pursuing depends on the totals and on which chapter you file. Bring recent pay stubs showing each deduction, the income execution or garnishment order, the judgment or other collection papers, and any notices from a marshal, sheriff, or agency. A list of every creditor, including those not yet garnishing, matters because the case deals with your debts as a whole rather than one creditor at a time.
Choosing the chapter and the timing
Chapter 7 can discharge many debts that lead to garnishment, such as credit cards and medical bills, while most student loans and certain taxes are much harder to discharge. Chapter 13 suits people with regular income who need to protect property or catch up on obligations through a repayment plan. A recent prior filing can shorten or eliminate the stay, which matters if this is not your first case. When we meet, we review the garnishment, your income and household, and the debts behind the deductions. That sets whether filing now, negotiating first, or challenging the garnishment itself is the more sensible route.
