Life does not always go as planned, and bumps in the road can keep people from repaying debts. When this happens, a creditor may choose to order a wage garnishment, which allows it to seize the money a debtor earns to repay what is owed. Depending on debts owed, wage garnishments may leave a borrower with little left to pay other bills, which presents a slew of other problems for someone who is likely already going through tough times.
There is a silver lining for those who opt for bankruptcy protection. In most instances, filing for bankruptcy will put an automatic stay into effect, which prevents lenders from collecting on debts during the bankruptcy process.
When Automatic Stay Does Not Apply
In most cases, wage garnishments will stop once the automatic stay is in effect. However, the automatic stay does not apply to all garnishments. Under section 362 of the United States Bankruptcy Code, there are three types of debt which are exempt from the stay.
- Child and/or spousal support
- Certain tax debts
- Debts resulting from certain criminal actions
Avoiding Relief From Stay
Even with debts for which automatic stay does apply, creditors have the option to request to remove a stay. If a creditor chooses to do so, a court hearing will be held to determine whether the lender’s reasoning for removal is substantial enough to lift the stay. In this case, the help of an experienced West Palm Beach bankruptcy attorney is essential for demonstrating that the borrower should continue to be provided protection by the bankruptcy court.
In addition to wage garnishments, there are other ways creditors may recover the debts which are owed. These might include foreclosure or repossession, depending on what the loan was taken out for. Protecting oneself from these actions requires strong legal representation, and quick action.
If you are struggling to repay debts, it is time to turn things around. Call a West Palm Beach bankruptcy attorney at Kelley & Fulton today to get back on the right track.