Bankruptcy will stop wage garnishments, except those for child or spousal support. Here is how it works.
Wage garnishments are handled by an intermediary law enforcement agency, often times the local marshals or the local sheriffs. This means that the employer does not just hand the money over to the creditor each month.
Instead, the employer turns over the garnished money from your paycheck to the sheriff or local marshal. The marshal in turn sends the money to the creditor.
After filing the bankruptcy documents that we prepare for you, you contact the law enforcement agency responsible for handling the wage garnishment and give them a copy of the top page of the petition. This is the page that has the court docket number.
The court will not notify them, so you have to do this yourself.
When the law enforcement agency receives the copy of the petition from you, they contact your employer and instruct them to stop sending your money.
If the law enforcement agency has in the possession, garnished funds from your paycheck that they have not yet send to the creditor, they will turn it over to the bankruptcy trustee who may in turn give it back to you.
If you have a wage garnishment, you will want to act quickly, not only to stop the garnishment, but to also get back some of the money they have taken from you.