When creditors obtain a civil court judgment, they can garnish up to 25% of your disposable earnings or freeze bank accounts. Filing bankruptcy is the most powerful legal tool available to immediately stop active garnishments.
The Power of the 11 U.S.C. § 362 Automatic Stay
The moment a bankruptcy petition is electronically docketed with the federal court clerk, the Automatic Stay takes effect by operation of law. Creditors and payroll departments must halt all active paycheck deductions immediately.
Recovering Pre-Filing Garnishments (Preferential Transfers)
Under bankruptcy code 11 U.S.C. § 522(h), debtors may often recover garnished wages taken within 90 days prior to filing if the total exceeds $600 and the funds can be protected using applicable state or federal exemptions.