Stop a garnishment

Recover Lost Wages

If you have been sued or are facing a garnishment, you can file Bankruptcy to stop a garnishment and protect your money

Stop a garnishment by filing bankruptcy

In Tennessee, a creditor who obtains a judgment against you in court can collect against that judgment by garnishing your wages. Up to 25 percent of your after tax wages can be subject to garnishment. The garnishment will last until the creditor’s judgment is paid in full.

Filing a Bankruptcy can stop a garnishment. The automatic stay stops any creditor collection efforts and this includes a garnishment. The court will get notice of your bankruptcy filing and will release the garnishment.

If you are being garnished, you have rights to keep your money. No matter whether you are being garnished from a medical bill, personal loan, or repossessed vehicle, you can stop it. If your are in Elizabethton, Johnson City, or surrounding areas and are being garnished, let me know. I can provide you with affordable bankruptcy or debt relief help to get you back on track Call or click for a free consultation if you are being garnished and need help from a Johnson City and Elizabethton debt relief attorney.

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Can I recover garnished money?

Yes! The short answer is that if you have been garnished more than $600 in 90 days, you can recover all the money lost in that time period.

Take for example: Lisa is paid every two weeks. She was garnished $250 out of every check in June, July, and August. During that time period, she was garnished $1,500. If Lisa files bankruptcy on September 1, she is entitled to recover the $1,500 during those three months.

What is the law that allows recovering garnished money?

The Bankruptcy Code 11 USC §547(b) lists different types of transfers of money that are considered “preferences.” A preference can be avoided, meaning undone, by filing bankruptcy.

A “preference” is a transfer (1) for the benefit of the creditor; (2) on account of an antecedent debt owed before the transfer was made; (3) made while the debtor was insolvent; (4) made within 90 days before the date of filing bankruptcy; and (5) enables the creditor to receive more than if the transfer had not been made.

A creditor has defenses to the “preference” rule. The main defense is if the amount transferred was less than $600.

A recent garnishment fits squarely inside this avoidable preference rule because: (1) it benefits the creditor; (2) is on account of an old debt or judgment; (3) is made while the debtor could not pay his debts; (4) presumably was garnished within 90 days of filing Bankruptcy; and (5) enables the creditor to receive more than nothing at all.

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Cisowski Law Bankruptcy and Debt Relief Options

Cisowski Law offers different types of bankruptcy and different debt relief options depending on your situation. There are two primary types of bankruptcy available for consumers, these are known as Chapters of bankruptcy based on the chapters they appear in the Federal Bankruptcy Code. The different chapters will give you different results and will be better depending on the individual.

Chapter 7 Bankruptcy

A Chapter 7 Bankruptcy is a personal bankruptcy and elimination of debts. If you qualify to declare and file chapter 7 bankruptcy you can keep most or all of your assets including cars and home and eliminate most or all of your debts. In Tennessee most of your assets are exempt from reach of your creditors.

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is a repayment plan that allows you to stop foreclosures, recover lost vehicles and modify your debt so it works for your budget. Filing Chapter 13 is a powerful form of debt consolidation that bind creditors. You can restructure your debt and get better terms on car loans, furniture loans, and unsecured debts.

Bankruptcy Quick Basics

What is Chapter 7 Bankruptcy?

A Chapter 7 Bankruptcy is a total discharge of your debts. If you are eligible you can keep most or all of your assets including cars and home and get rid of most or all of your debts. The Discharge will relieve you of any personal obligation of the debt. You will be protected from the Bankruptcy court’s discharge order. If a creditor tries to collect after your Chapter 7 Bankruptcy, they can be heavily penalized. In Elizabethton, you file your Chapter 7 Bankruptcy in Greeneville. A bankruptcy attorney in Elizabethton will be able to prepare your Chapter 7 and file your forms and represent you in Greeneville.

What is Chapter 13 Bankruptcy?

A Chapter 13 Bankruptcy is a repayment plan for debtors with regular income. This means that if you have income and debts, then a Chapter 13 will get you back on track by binding your creditors to a plan of repaying your debts over the course of 3 or 5 years. After you pay a portion of your debts through your plan you receive your bankruptcy discharge. In Elizabethton, you file your Chapter 13 in Greeneville and pay your plan through a trustee in Knoxville. Cisowski Law is a bankruptcy attorney near Elizabethton and can help file your Chapter 13.

What is the Bankruptcy Automatic Stay?

The automatic stay is an automatic court order entered when a debtor files bankruptcy. The order states clearly that any attempts to a collect a debt are suspended. If a creditor violates the automatic stay they are subject to penalties. The Automatic Stay is very powerful. It can stop lawsuits, garnishments, repossessions, and foreclosures.

What is the Bankruptcy Discharge?

The bankruptcy discharge is a court order that releases a debtor from any debt obligation. It is the ultimate goal for filing a Chapter 7 or Chapter 13 bankruptcy. The creditor will be violating the discharge and subject to punishment if they attempt to collect a debt after the debtor receives a discharge.

What is Bankruptcy Credit Counseling?

In 2005 Congress enacted a law requiring individuals who file Bankruptcy to take a credit counseling course before filing and a course in financial management after filing but before receiving a discharge.

How do I File Bankruptcy in Elizabethton?

Filing bankruptcy in Elizabethton requires you to fill out your bankruptcy forms and submit the to the Bankruptcy Court in Greeneville. There are a number of procedural requirements for filing Chapter 7 or Chapter 13. Cisowski Law is a bankruptcy attorney in Elizabethton and can assist you with filing your bankruptcy case.