Using Bankruptcy to Stop Wage Garnishment in New York
Many of our clients and prospective clients in Manhattan, Bronx, Queens and other boroughs are facing the difficult situation of a wage garnishment and wonder if a personal bankruptcy filing could help.
Just to review, a creditor with a judgment can garnish the defendant/judgment debtor’s wages. The law permits up to 25% of a judgment debtor’s wages to be garnished in any pay period, not exceeding 10% per year,.
Immediately upon filing a personal bankruptcy petition the automatic stay goes into effect.
It is a violation of the Bankruptcy Code for a creditor to continue with a wage garnishment once a bankruptcy case has been filed. We can usually get a wage garnishment stopped within a day of two of bankruptcy filing. For someone who is paid every two weeks — depending on when the bankruptcy case is filed — we should be able to stop the wage garnishment before the next pay period. Note that there are exceptions for certain types of debts, such as child support.
At Starr & Starr, PLLC we can assist you with a personal bankruptcy cases in New York to stop a wage garnishment. Please feel free to contact us at 888-867-8165 or by e-mail at firstname.lastname@example.org for further information or to schedule a consultation.