Jump to navigation Jump to content

Garnishment and Bankruptcy

I retained an attorney to file a bankruptcy but my garnishment has not stopped         

Often time clients come in and retain our services and hope that the garnishment stops then. Unfortunately that is not the case. Garnishments stop when the automatic stay of the bankruptcy is in effect which happens upon the bankruptcy being filed. Retaining an attorney and being in a bankruptcy are two different steps in the process.

We offer a free consultation for bankruptcy. You can come in and meet with one of our attorneys at no cost. After the consultation, if you determine that bankruptcy is your best option, then you can retain our attorneys by putting down a minimum payment and signing a contract. Retaining our firm does not mean you are in a bankruptcy. It means you have retained an attorney to file a bankruptcy. By informing creditors of this information, some may stop calling you however collection efforts are not required to stop until you are actually in a bankruptcy.

There is an automatic stay that stops your creditors from collecting from you while you are in the bankruptcy. This automatic stay does not take effect until you are in an active bankruptcy. That means fees are paid, paperwork is filled out, petition is reviewed and sign and then filed with the court. The paperwork includes listing all of your assets, creditors, income and expenses as well as providing taxes and paycheck stubs. As soon as it is file, the automatic stay takes effect. That is not the end however.

The garnishment does not stop the second we file. Many things have to happen before the garnishment is stopped. First, you file bankruptcy (making sure you list the creditor that is garnishing as well as the attorney for that creditor so that they can receive notice). After filing, have your attorney contact the creditor’s attorney and give them notice of the bankruptcy and request a release of garnishment. The creditor’s attorney then has to process this request and then send notice of the release of garnishment to both your attorney and to your employment to stop the garnishment. Once your payroll department receives the garnishment they release the garnishment and stop deducting from your paychecks.

To avoid all of the above, file the bankruptcy because you even receive a garnishment, a judgment or a summons. If you are in debt and cannot afford to pay your way out of debt, consult a bankruptcy attorney.

 

 


For Current Clients



Our Locations

St. Charles Office

1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400

At Hwy 94 and Hwy 70.

Get Directions | See Detail

St. Louis Office

3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834

Close to the corner of Hampton Ave and Chippewa. By appointment only.

Get Directions | See Detail

South & Jefferson County office

7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400

Across the South County Mall.

Get Directions | See Detail

Florissant Office (North County)

1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880

At North Hanley and Hwy 270.

Get Directions | See Detail

Belleville Office (St. Clair county)

2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560

On Hwy 159, next to Schnucks.

Get Directions

Granite City Office (Madison County)

3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560

Across Shop'n Save, by appointment only.

Get Directions | See Detail

Follow Us On