Lawsuits and garnishments
Being sued or garnished? Bankruptcy can stop it.
Most collection lawsuits and wage garnishments stop the day a bankruptcy case is filed. For many people, the case ends the lawsuit for good.
Lawsuits
How bankruptcy stops a lawsuit
When your case is filed, the automatic stay works like a restraining order against your creditors. Most collection lawsuits have to stop where they are.
Whether the lawsuit goes away for good depends on the debt. If it's the kind bankruptcy erases, such as a credit card, medical bill or personal loan, there's nothing left to fight over once you receive your discharge.
If the debt can't be erased, Chapter 13 can still give you an affordable way to repay it while you deal with everything else.
Don't ignore court papers
If you've been served with a lawsuit, there's a deadline to respond. Ignoring it usually leads to a judgment, and a judgment can lead to garnishment. Call us when the papers arrive.
What filing stops
Protection from the day you file
Wages
Wage garnishments
Your employer is told to stop withholding. In some cases, money taken shortly before you file can be recovered.
Bank accounts
Bank levies
Filing stops a creditor from freezing or emptying your bank account to collect a judgment.
Court cases
Collection lawsuits
Most lawsuits to collect a debt stop, and many end entirely once the debt is discharged.
Read more in our article on wage garnishment in Ohio.
Common questions
Lawsuit and garnishment questions
How fast does a garnishment stop?
The stay takes effect the moment your case is filed. It can take a pay period for your employer's payroll to catch up, so we notify everyone right away.
Will I get back money that was already garnished?
Sometimes. It depends on the timing and the amount, so it's worth asking as soon as possible.
What if I'm being sued by a debt buyer?
Debts bought by collection companies are treated like any other unsecured debt. Bankruptcy usually stops the lawsuit and erases the debt.
Do child support or tax garnishments stop too?
Support orders generally continue. Tax and student loan garnishments are handled differently, so bring the paperwork to your consultation.
Get your paycheck back
The sooner we talk, the more of your money we can protect.