When people fall behind on their debt payments, their creditors can take legal action against them by pursuing court orders for wage garnishments. If granted, these orders will effectively permit creditors to automatically take a percentage of people’s income directly from their paychecks or bank accounts.
Because wage garnishments can be devastating to people who are already struggling with serious debt, it’s critical that anyone facing threats of garnishments consult with one of the trusted Denver metro area bankruptcy attorneys at Garcia & Gonzales, P.C. to:
- Find out more about their options for stopping wage garnishments and other actions creditors may be taking against them
- Protect themselves and get on the path to debt relief.
Stop Wage Garnishments through Bankruptcy
When bankruptcy is a viable option for people facing wage garnishments, filing for bankruptcy can be a powerful way to stop creditors from moving forward with wage garnishments (as well as with foreclosures, repossessions, and lawsuits). The reason for this is that, as soon as people file for bankruptcy:
- A court order known as an automatic stay takes effect immediately.
- This court order halts any and all creditors a person may have from pursuing further punitive action against him.
In fact, once a bankruptcy petition has been filed:
- A person’s assets will become part of his bankruptcy estate, which will be overseen by a bankruptcy trustee.
- The establishment of a bankruptcy estate will prevent any single creditor from taking all of a person’s assets (which could possibly leave the other creditors empty-handed).