Can we declare bankrupcy to stop wage garnishment fm credit card and stop foreclosure proceedings?
In short. YES FOR BOTH. Now, in long…… STOP GARNISHMENTS. EVEN BEFORE THEY START ======================================… Filing bankruptcy can stop a garnishment immediately. If all funds that have been garnished have been properly exempted, the garnished funds can even be returned to the debtor. When a bankruptcy is filed, a special provision of the bankruptcy code kicks in and stops all creditor action to collect a debt. The special provision of the bankruptcy code is Section 362 and is called “the Automatic Stay”. The Automatic Stay is a court order to all creditors to stop collecting debts immediately. When a paycheck or bank account is garnished, money is taken from the paycheck or other account and held until a certain time when the money is supposed to be delivered to court and turned over to the creditor. The date that the creditor is supposed to pick up the garnished funds in court is often called “the return date”. If a bankruptcy is filed before the return date set for
