Stopping a Garnishment in Minneapolis, Minnesota
If wage garnishment is imminent or you are already being garnished you may consider bankruptcy to stop garnishment. The automatic stay of bankruptcy takes effect on the day that your case is filed. The automatic stay tells your creditors that they cannot collect debt or enforce debt collection efforts including garnishments. The creditor must stop the garnishment as soon as they receive notice that your case has been filed. The bankruptcy court will notify your creditors of your bankruptcy filing. Some creditors will receive this notice by mail, and it can take up to four weeks. If you are being garnished, your attorney will likely send a cease-garnishment letter to the garnishing creditor’s attorney or the garnishing creditor on the day of filing. They may also contact your payroll department on the day of filing with the notice.
How your payroll is run may affect when the garnishment actually stops. If, for example, your employer has already processed your next payroll check before you file bankruptcy, filing bankruptcy will not stop the garnishment, as it is already underway. Since it was a garnishment that occurred after the filing, you may be able get these funds back.
Depending on your exemptions and the amount taken by the creditor, you may be entitled to get back the wages garnished before filing for bankruptcy. Ask your attorney if you are eligible before filing the case.
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