When a person files for bankruptcy, they are immediately extended a number of protections designed to protect them from further actions by creditors. The very minute a bankruptcy has been filed, creditors can no longer to seek collection of the debts. This means any garnishments currently occurring must be terminated.
The Bankruptcy Code also provides a means for recovering wage garnishment that occurred prior to filing for bankruptcy. However, in order to qualify you must of had $600 or more garnish from your paycheck within the 90 days leading up to the filing of your case. If you’re considering bankruptcy due to impending wage garnishment, or if you’ve just started having your wages garnished, you may want to consider waiting to file until you hit the $600 threshold. After all, if you’ve had $599.00, it is probably a good idea to wait and allow your creditor to garnish one more paycheck so you break over the $600 line. This way, with the help of your attorney, you can recoup funds from the creditor who has been reaching into your pocket.
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