If you file bankruptcy, but your wages are being garnished by a state agency, will the bankruptcy stop the garnishment?
If you file bankruptcy, but your wages are being garnished by a state agency, will the bankruptcy stop the garnishment?
The automatic stay will apply to wage garnishments. Depending upon the nature of the debt, it may nor may not be dischargeable -- and if you file for Chapter 7 bankruptcy, you'll still have to pay back the amount if it is a nondischargeable debt. (Your bankruptcy lawyer can clarify the dischargeability of the debt.) For Chapter 13, even if its not dischargeable, repayment can be make part of your Chapter 13 plan -- although you may owe part of the debt at the conclusion of your plan, if it's not paid off in full over the course of the plan.