How the Automatic Stay Protects You

The stay begins automatically when you file for bankruptcy. No additional steps are required. Under Chapter 7, the stay protects you until your debts are discharged. If the debt was included in the bankruptcy, the garnishment will not return. If the debt was not discharged, the garnishment will resume.

With Chapter 13 bankruptcy, the stay protects you for the duration of the repayment plan. This ranges from three to five years on average. During the automatic stay, certain non-dischargeable debts can be put on hold. This includes student loans. Please be aware that you may owe additional penalties and interest for nonpayment during the bankruptcy. The automatic stay will end when your case is closed, dismissed or discharged. In some instances, the stay can be lifted to allow garnishment, but it is not common.

Priority Debts and Exclusions

Garnishment will continue for priority debts. These include child support payments and alimony. This applies regardless of whether you are current on your payments or owe back support. The payments will continue to be withheld on a voluntary or involuntary basis.

Garnishments related to certain non-dischargeable debts will resume after the automatic stay ends. These debts include judgments related to criminal cases or fraud as well as back taxes owed to the IRS or the Oklahoma Tax Commission. Depending on the type of debt that you carry, the stay may not fully protect you from wage garnishment.

Enforcing the Automatic Stay

If funds were withheld from your paycheck immediately before your filing, it’s possible to have them returned if certain requirements are met. I will work with the bankruptcy court to make sure that the funds are returned when possible. Debt collectors and organizations that violate the stay by collecting debts or garnishing wages face large penalties. They may also be ordered to pay damages to you.

If you’re concerned about having your wages or assets garnished during a difficult time, call me at 405-216-0007. We can assess your situation during a free consultation to see if there is a way to protect your hard-earned wages. For more than 25 years, I have help Oklahoma residents navigate bankruptcy, stop wage garnishment and manage debt.

how-do-i-start

Schedule your consultation TODAY.

  • This field is for validation purposes and should be left unchanged.

Latest Articles

Japanese auto parts maker, Takata, files bankruptcy

Japanese auto parts maker, Takata, filed bankruptcy in Japan and the United States. Takata is on the hook for billions of dollars to banks and automakers, which have been covering the replacement costs of tens...

Read More...

A Pet Leasing Company files bankruptcy

Bristlecone Holdings filed a chapter 11 bankruptcy in April in Nevada. The Reno, Nevada based financial technology company leases pets, wedding dresses, furniture and car parts. The company grew out of another company known as Wags, LLC,...

Read More...

Sears Canada files bankruptcy

Sears Canada filed for bankruptcy protection on Thursday. The company plans to close 44 of its 200-plus store locations. In addition, the company plans to layoff nearly 3,000 employees at the stores and its Toronto headquarters....

Read More...

Boris Becker declared bankrupt by British Court

Boris Becker was declared bankrupt by a British court on Wednesday after the former tennis player failed to pay a long-standing debt. The matter stems from a debt Becker has owed to private bankers Arbuthnot Latham...

Read More...