Stopping Wage Garnishment, Bank Account Garnishment, & Tax Refund Garnishment with Bankruptcy
Either a Chapter 7 or Chapter 13 bankruptcy filing is an excellent quick, guaranteed way to stop the ongoing or imminent garnishment of your wages, bank accounts, or State of Michigan tax return.
The moment you file a bankruptcy petition, a “master injunction” under Federal law called the Automatic Stay Against Collections is enforced against all of your creditors, preventing them from taking any action constituting the collection of a debt, or even from failing to stop ongoing actions constituting the collection of a debt.
This includes prosecution of lawsuits and the garnishment of wages, bank accounts, or State of Michigan tax refunds that can result as a creditor’s means of collecting on a collection lawsuit judgment.
Not only will the filing of a bankruptcy petition stop an ongoing or threatened garnishment—and close down the state court collection lawsuit originating the garnishment—a bankruptcy filing will also require the return of funds garnished prior to the filing of the bankruptcy.
If $600 or more of funds have been garnished from your wages, bank account, or tax return in the 90 days prior to the date your file your bankruptcy petition, the creditor must return those funds.
The Hilla Law Firm has successfully retrieved such garnished funds time and time again and aggressively pursues the rare creditor who fails to comply the demand for return of garnished funds, including obtaining monetary sanctions for you from non-compliant creditors.
If you are being garnished in any way or about to be garnished, contact The Hilla Law Firm to schedule a free, initial consultation immediately.