Did you know?
If your wages or your bank account are being garnished, you can file for bankruptcy to stop the garnishment. Even better, once you file for bankruptcy, you might be able to get some of your money back.
How can bankruptcy help with garnishments?
Are you being garnished right now? If so, filing for bankruptcy will immediately stop the garnishment. It may also help you recover certain funds that have been garnished before you filed for bankruptcy protection.
How? When a creditor has garnished more than $600 and that money was garnished in the 90 days prior to filing for bankruptcy, this is treated as a preference in bankruptcy. This means that after you have filed for bankruptcy, you can demand that this money get sent back to you. Yes, you can get your money back!
This rule is tricky and has certain requirements. First, the dollar amount must be more than $600. Second, that money must be taken within the 90-day period before your bankruptcy case is filed. Third, money garnished outside of that 90-day window cannot be recovered.
What if the creditor doesn’t send the money back? Even worse, what if they continue to garnish you after your bankruptcy is filed? You might be able to sue them!
If you are being garnished, or at risk of being garnished, then bankruptcy might be the right option for you. Filing for bankruptcy will impose an automatic stay which completely halts any collections or lawsuits that are against you. Whether your creditors are threatening a lawsuit, the lawsuit was just filed, there is a judgment against you, or the creditor is now garnishing your wages, these actions will stop once you file for bankruptcy.
I’m being garnished. What should I do?
If you are being garnished or fear that you will be garnished because of unpaid debts, you need to act quickly to protect your rights. We help Oregonians stop garnishments and recover garnished money through the bankruptcy process. Contact us today for your free consultation.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
The information and materials provided in this article have been prepared for informational purposes only and do not constitute legal advice and do not constitute an attorney-client relationship between you and this law firm. If you believe you have a legal case or claim, you should contact an attorney promptly; strict time limitations may apply to your case or claim.