When you file for Chapter 7 or 13 bankruptcy, you will automatically be protected by an order that the Bankruptcy Court issues when your petition for bankruptcy is filed. That order is referred to as an “automatic stay” order.
The automatic stay order stops creditors instantly from taking any actions against you to collect your debts with the creditors. For example, all litigation (including court hearings), wage and bank garnishments, real estate foreclosure actions, attempts to repossess your automobile, etc. must be stopped by your creditors pursuant to the automatic stay order.
If your wages are being garnished at the time you file for bankruptcy, it may take approximately 30 days before you begin to receive a full paycheck again. However, any wages garnished by a creditor after the date your bankruptcy petition is filed, must be returned to you by the creditor.
If you should have questions about bankruptcy, please call us. Provided by Bailey & Gunderson Co., L.P.A., Attorneys at Law, with offices in Norwood and Western Hills. 513-631-0022.
