The automatic stay is a special legal provision that is activated when you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. This stay immediately stops all creditors’ attempts to collect a debt during your case. This stay will immediately stop a wage garnishment – or keep one from being started in the first place. There is an exclusion for garnishments for such debts as child support.
The automatic stay stops:
- Garnishment or levies of wages or bank accounts
- Collection attempts through harassing phone calls or letters
- Starting or continuing any lawsuits
- Repossession of assets
- Foreclosure on property
The purpose of an automatic stay is to provide time and protection for you while your bankruptcy filing is reviewed by the bankruptcy court to determine the rights of all of the creditors.
Since the automatic stay has an immediate effect, it is important to consult with an experienced bankruptcy attorney if your wages have been or will be garnished. Garnishment itself may not be the only determining factor for filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy, and a knowledgeable bankruptcy lawyer can help you evaluate any alternatives. Contact the bankruptcy attorneys at the Frutkin Law Firm, PLC, in Phoenix, Arizona.
Tags: Arizona, automatic stay, bankruptcy, bankruptcy attorney, bankruptcy attorneys, bankruptcy court, bankruptcy filing, bankruptcy lawyer, Chapter 13, Chapter 7, Frutkin Law Firm, garnished, Phoenix, wage garnishment
