Bankruptcy is often one of the best methods to stop wage garnishments. People frequently have a number of misconceptions about bankruptcy in Columbus. One of the biggest misconceptions is that filing for bankruptcy protection means you will lose your home or other assets that you have worked a lifetime to acquire. In most cases, this is simply not the case. Columbus Bankruptcy Lawyer Scott Needleman provides free consultations to help you to understand of the bankruptcy process better, so you can make an informed decision whether filing for Columbus Ohio bankruptcy is the right choice for you and your family. As a Columbus, Ohio Bankruptcy Attorney I understand how financial problems can negatively impact you and your family which is why we are committed to helping you find a solution. Contact my Columbus bankruptcy lawyer office today by calling 614-575-1188 so that we can discuss your legal options and start you on the path to a brighter, debt-free future.
The Bankruptcy Automatic Stay in Columbus, Ohio
Once you file for bankruptcy, an automatic stay is initiated. This prohibits collection activities for the time being, meaning that your wages will no longer be garnished. As long as the automatic stay is active, you don’t have to be concerned about creditors garnishing your wages or contacting you to collect.
Note: creditors have the right to ask the court to lift the automatic stay.
Automatic Stay Exceptions
It is important to note that there are exceptions to the automatic stay, such as alimony and child support. These are considered “priority debts” by the court, meaning that the obligation cannot be discharged through bankruptcy. Subsequently, if your wages are being garnished to pay these obligations, the garnishment will not stop as a result of a bankruptcy automatic stay.
After The Bankruptcy Is Discharged or Dismissed
It is nice to know that creditors cannot bother you when the automatic stay is in place. However, you need to know what happens after bankruptcy. Once you receive a discharge or your case is dismissed without a discharge, the automatic stay is lifted.
Have you received a discharge related to the obligation resulting in wage garnishment? If so, the creditor is not allowed to resume activity. If your case is dismissed without a discharge, the creditor can once again garnish your wages.
Can I really get some Money Back?
There are situations in which you can recover some wages that were garnished before filing for bankruptcy. Typically, you can collect wages that were garnished within 90 days before your filing if covered by an exemption and in excess of $600.
Columbus Bankruptcy Advice and Guidance
If you are thinking about speaking with a Columbus bankruptcy attorney as a means to stop wage garnishments, now is the time to contact Columbus bankruptcy attorney Scott Needleman. There are many details to be aware of, so you must make sure you are 100 percent sure of what the process will entail and how your situation will be impacted.