When you file for bankruptcy, “automatic stay” is immediately enacted, protecting you from wage garnishment. If your creditors engage in certain collection activities against you, it may be possible to recoup some of your garnished wages after filing for bankruptcy. With the help of a Cincinnati bankruptcy attorney, you can recover some of the garnishment if it meets specific qualifications.
Understanding Wage Garnishment After Automatic Stay
After filing for Chapter 7 or Chapter 13 with the help of a bankruptcy attorney, wage garnishment will be subject to automatic stay with the exception of priority debts such as child support. With the guidance of your bankruptcy attorney, you should be able to recoup the wage garnishment, assuming that:
· It occurred within 90 days of your bankruptcy filing.
· At least $600 in wage garnishment was collected.
Once you file for bankruptcy, you can seek legal counsel from your bankruptcy attorney to recover wage garnishment from the last 90 days. To do this, you must file a complaint against the entity that practiced wage garnishment. Fortunately, there is no fee to file this petition, so recovering lost wages won’t result in you losing money during the process.
Just like any other aspect of bankruptcy, trying to recover wage garnishment requires certain procedures that you must follow. By working with your bankruptcy attorney, you increase the chances of having the money returned to you instead of becoming irrecoverable. Keep in mind that the window of time to recoup wage garnishment is limited to the pending status of your bankruptcy case, so you and your bankruptcy attorney must act quickly.