When you are in debt, the idea of collectors contacting you to harass you over owed funds or your utilities being shut off can be anxiety-inducing. However, if you discover that your wages are being garnished, it can make this situation even more urgent. If you’ve explored your options and have decided that filing for bankruptcy is in your best interest, you may wonder if this process can help stop wage garnishments. The following blog explores what you should know about the automatic stay and why you should connect with a Memphis, TN wage garnishment lawyer who can help you explore your legal rights during these times.
What Is the Automatic Stay?
When a consumer files for bankruptcy, the bankruptcy courts will grant them what’s known as an automatic stay. This essentially stops all collection efforts against the party. Creditors must cease contact with you, lawsuits may be paused, and other actions must stop. A creditor who does not stop their measures can be sued for violating the rules of the automatic stay, which allows the party to reclaim the money they had taken from them.
Some measures may continue, as they the automatic stay laws exempt these cirucmstances. For example, if you are being evicted and the landlord obtains a judgment of possession against you before you file, they will not have to stop the eviction process. Additionally, matters revolving around child support or alimony will not stop when you file for bankruptcy.
It’s also important to note that your creditors may be able to petition the court to lift the stay so they can continue pursuing you for the funds owed.
Will This Help Stop Wage Garnishments?
When a creditor files a lawsuit against you and you do not respond or refute the claims within the necessary timeframe, they will receive what’s known as a default judgment against you. Essentially, this means the courts will grant the person what they are asking for since you never responded. This means your wages will be garnished to pay the creditor or plaintiff what they are owed. In Tennessee, creditors can garnish up to 25% of your wages to repay the debt they are owed.
If you file for bankruptcy and your wages are being garnished to satisfy a judgment order against you, the automatic stay will stop the garnishment of your wages. This can help provide relief during the bankruptcy process.
Though filing for bankruptcy can help you achieve debt relief, it’s important to understand that filing is an incredibly complex process. As such, it’s in your best interest to connect with an experienced bankruptcy attorney from the Arnold Law Firm who can help you navigate the complexities of this matter to help you fight for the best possible outcome for your circumstances. Connect with us today to learn how our firm can assist you through these matters.
