After a creditor receives a judgment from a Court, the creditor can seek to collect shortly thereafter by issuing a court order to your employer to automatically withhold a certain amount from each paycheck until it is paid in full while interest accrues. A bankruptcy can STOP this as soon as your case is filed, which could be before your next paycheck is garnished!
Bank Account Garnishments
After a creditor receives a judgment from a Court, the creditor can seek to collect shortly thereafter by issuing a court order to your bank accounts to freeze the funds currently held in the bank accounts and to freeze any additional funds that get deposited in such accounts, including paychecks, to then turnover to the Creditor as payment toward the debt you owe. A bankruptcy can STOP this if your case is filed before the bank account is frozen.
Harassing Phone Calls
Anyone who is past due on a debt (including car loans, house payment, credit cards, etc) begins to receive countless phone calls at all times of the day making very harmful, if not downright illegal, statements to coerce you into making any form of payment on your debt. A bankruptcy can STOP this as soon as your case is filed and can provide us a process to sue your creditors if they refuse to stop!
Seriously, does anyone like debt collectors? Ironically, our firm has represented debt collectors and even they do not like other debt collectors. Simple, a bankruptcy can STOP these debt collectors in their tracks (and with their big mouths wide open) and provides a means to sue them if they refuse to leave You alone! And trust us, we love to sue arrogant and manipulative debt collectors using illegal tactics to harm our clients!
Credit Card Debt
Sometimes credit card debt becomes impossible to manage due to a loss of income or outrageous interest rates; and therefore, it will take 10 to 15 years to pay off your existing credit cards. Whatever the reason, bankruptcy can put a STOP to your credit card debt and high interest accumulation by eliminating all or a portion of the credit card balances.
Sometimes medical bills pile up because of no health insurance or inadequate insurance coverage, or unexpected and emergency medical care is required thereby making it nearly impossible to pay off or even recover from health problems. Whatever the reason, bankruptcy can put a STOP to your medical debts and is a very acceptable reason for filing bankruptcy.
In some situations the financial stress is so great that some families are juggling to pay all bills that become due and are unable to pay the necessities, like the electric bill. If an electric bill becomes past due, then a notice may be received designating a shutoff date. By filing a bankruptcy before such shutoff date we can STOP the utility from being shutoff and can eliminate the past due amount in bankruptcy; however, a security deposit will be required to be paid immediately, in which we can then file a motion with the Court to grant you an additional 90 days to pay the deposit!
Old Past Due Rent
Bankruptcy can STOP a landlord or debt collector from collecting past due rent!
Read the section/icon regarding Your Car.
Read the section/icon regarding Your Home.
High Car Payments
Read the section/icon regarding Your Car.
Read the section/icon regarding Tax Information.
Are you still wondering… “can bankruptcy stop garnishments?” We hope the information above helped you with that question. If you have additional questions please call us at (800) 7-BENSON to setup a free bankruptcy consultation.
Important Disclaimer: The information discussed above and throughout this website should not be relied upon to make any decisions without first speaking to a bankruptcy attorney. There are many intricate rules of law governing bankruptcy with many exceptions to the general rules that could change the advice given by an attorney based on the differing facts in each person’s special set of circumstances. THEREFORE, it is important to discuss any information contained in this website with one of our attorneys before taking any action or refraining from taking any action.