Filing Chapter 7 or 13 Bankruptcy can stop garnishments immediately. If you need to stop garnishments today, read on to see how a Chapter 7 or Chapter 13 Bankruptcy can make it stop now.
A garnishment occurs when a creditor sues you, receives a judgment, and requests an order to garnish your wages. If the order is granted, the order is sent to your employer demanding that part of your paycheck goes to pay for the debt.
Immediately. Sort of. Let me explain. I see three main scenarios. The first is where someone comes to me when there is an active wage garnishment. The second is when there is a garnishment order but for whatever reason the garnishment is not actively taking money out of their paycheck. The third is before a garnishment order has been issued.
A creditor may garnish a debtor up until the day a Chapter 7 or Chapter 13 Bankruptcy is filed. That means a debtor may see a partial garnishment even after the bankruptcy is file. The best way to explain is through an example.
EXAMPLE: Your pay period is March 1st through March 14th and you payday is March 20th. You file bankruptcy on March 8th, exactly halfway through your pay period. A creditor may garnish you up through March 8th. When you get your paycheck on March 20th – twelve days after filing your bankruptcy case – you will have a partial garnishment for the period March 1st – March 8th. The was no garnishment for the rest of your pay period (March 9th – 14th).
The garnishment will continue until the debt is paid or as long as you work at your job.
Short answer: 25% of your net income. Net income is what you have left after your taxes and other deductions are taken out.
Long answer: KSA 60-2310(b) states in part: (1) Twenty-five percent of the individual’s aggregate disposable earnings for that workweek or multiple thereof; (2) the amount by which the individual’s aggregate disposable earnings for that workweek or multiple thereof exceed an amount equal to 30 times the federal minimum hourly wage, or equivalent multiple thereof for such longer period;
Let’s say you work 40 hours per week and earn $10/hr. You get paid every two weeks, so your gross pay is $800. After taxes are taken out your net pay is $680. The creditor who is garnishing you is entitled to 25% of that $680 – taking $170 of your paycheck and leaving you with just $510.
Yes it is. Most people do not have room in their budget to absorb a 25% decrease in income. We have car payments, rent, mortgage, student loans, etc that we are all dealing with. A 25% wage garnishment is enough to crush someone who is living paycheck to paycheck. But bankruptcy can help.
Filing a Chapter 7 or Chapter 13 Bankruptcy will stop garnishments, but a creditor is entitled to garnish your wages up until the day you file. A partial garnishment is likely to show up on your next paycheck depending on where you are in the pay cycle at work. If you know you can’t afford a 25% garnishment, then you need to speak to a lawyer immediately.
To Learn More About Filing Chapter 7 or 13 Bankruptcy and How it Can Stop Garnishments, please give us a call at for a FREE Consultation over the phone or in person or you can email us now. Chris W. Steffens is a Kansas Licensed Bankruptcy Lawyer.