A garnishment is a legal means by which creditors collect on money judgments by ordering a third party (the garnishee) to pay money otherwise owed to the debtor. The most common type of garnishment is a wage garnishment, however, creditors can also garnish funds from bank accounts and tax returns. Garnishments can be fought when initially filed, however, in most cases the creditor has obtained a lawful judgment and is entitled to the garnishment. If a payment agreement cannot be worked, filing for bankruptcy protection may be your best option to stop the garnishment.

As soon as a bankruptcy case is filed under either Chapter 7 or Chapter 13, the Bankruptcy Court issues an order prohibiting creditors from garnishing wages or assets. The process may take several weeks but can be expedited by sending notice of the bankruptcy filing directly to the creditor who must then notify the court where the garnishment proceedings were filed. Once the employer or bank is notified the garnishment will cease. Even if the garnishment does not immediately stop, funds garnished after the bankruptcy filing must be returned. If you file for Bankruptcy under Chapter 7, and qualify, the debt which caused the garnishment will be discharged. Under a Chapter 13 filing, you will be required to pay back all or part of the original debt but will only have to do so according to the bankruptcy plan. This will help you avoid unexpected and sometimes dramatic decreases in your income. As always, if you are faced with a garnishment you should consult an attorney to see if filing for bankruptcy protection is right for you.

- Richard V. Stokan, Jr.