David M. Siegel answers in 24 seconds. Watch on YouTube · Read the transcript.
Short answer: Yes. Filing stops a wage garnishment immediately, under either Chapter 7 or Chapter 13. The automatic stay takes effect the moment the case is filed, and stopping a garnishment is often the exact reason someone files in the first place.
What a garnishment is actually costing you
A creditor with a judgment against you can take a portion of your paycheck before you ever see it. In Illinois that can reach fifteen percent of gross pay — taken off the top, every pay period, until the judgment is satisfied.
For most households that is the difference between covering the month and not. It is also the point at which people who had been managing suddenly cannot, which is why garnishment is one of the most common reasons a case gets filed.
The automatic stay stops it immediately
The moment a bankruptcy case is filed, a federal injunction called the automatic stay takes effect. Collection activity has to stop — including an active garnishment. It does not matter whether the garnishment started last year or begins next Friday.
This works under both chapters. Chapter 7 stops the garnishment and eliminates the underlying debt. Chapter 13 stops it and folds the debt into a repayment plan you can afford. The relief is the same either way; which chapter is right depends on your broader situation.
Timing genuinely matters here
This is one of the few areas of bankruptcy where waiting has a direct, measurable cost. Every pay period between now and filing is money gone that you do not get back.
If a garnishment is already running, or you have received notice that one is coming, that is a reason to have the conversation this week rather than next month.
What happens to the debt behind the garnishment
A garnishment is a collection method, not a category of debt. Behind it is usually a credit card, a medical bill, a personal loan or an old auto deficiency — and those are exactly the debts Chapter 7 eliminates.
Stopping the garnishment solves this month. Discharging the debt is what stops it from happening again.
Being garnished right now?
The consultation is free and there is no obligation. You will find out
what you qualify for, which debts can be eliminated, what it costs, and what the payment plan looks like.
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Full transcript of the video
can bankruptcy stop a wage garnishment yes and that is often the purpose of filing a bankruptcy if you’re being garnished sometimes you’re losing 15% of your gross pay to a creditor by filing a bankruptcy we can stop that garnishment dead in its tracks that’s under Chapter 7 and under Chapter 13 so bankruptcy either chapter will stop a garnishment that’s pending or happening right now
Related questions
About the author. David M. Siegel has represented consumer bankruptcy clients in the Northern District of Illinois since 1991 and is the author of several books on consumer bankruptcy. His offices are in Wheeling, South Chicago, Joliet and Westchester.
This article is general information about Illinois and federal bankruptcy law. It is not legal advice, and reading it does not create an attorney-client relationship. Every case turns on its own facts — speak with an attorney about yours.
