The Automatic Stay -- Immediate Protection
The moment a bankruptcy petition is filed, Section 362 of the Bankruptcy Code creates an automatic stay that immediately halts most collection actions, including wage garnishment. No motion is needed. No court hearing is required. The stay is automatic and effective upon filing.
11 U.S.C. Section 362(a)(2): The filing operates as a stay of "any act to... enforce against property of the estate a lien that secures a claim that arose before the commencement of the case."
For garnished wages, this means the creditor must stop taking money from your paycheck. Your employer must stop withholding garnished amounts. Any garnishment order from a state court is superseded by the federal bankruptcy filing.
Notifying Your Employer
While the stay is legally effective immediately, practical enforcement requires notifying your employer. Steps:
- Get the case number and filing date from the bankruptcy court
- Provide written notice to your employer's payroll department
- Include a copy of the petition or the court's notice of filing
- Follow up to confirm garnishment has stopped
Most employers comply within one pay period. If your employer continues garnishing after receiving notice, they may be liable for violating the stay.
Notifying the Creditor
Also send notice to the creditor who obtained the garnishment order. The creditor is legally obligated to stop collection upon learning of the bankruptcy filing. If the creditor directs the employer to continue garnishing, that is a willful violation of the stay.
Document everything. If garnishment continues after you provide notice, keep copies of every paycheck showing continued deductions. You may be entitled to actual damages, attorney fees, and punitive damages under Section 362(k).
Learn more: Stay violation remedies at automaticstay.org
Emergency Filing
If garnishment is happening right now and you need immediate relief, you can file a bare-bones emergency petition:
- File the petition (Official Form 101) with the filing fee
- The stay takes effect immediately upon filing
- You have 14 days to file remaining schedules, statements, and certificates
An emergency filing is appropriate when you cannot wait for a full filing -- for example, if your next paycheck will be garnished and you need protection today.
Related: Step-by-step filing guide | Complete automatic stay guide
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