Getting My Wages Garnished Now-Will A Bankruptcy Cancel Out My Current Garnishment & Keep Any Positive Credit Still On My Report

Asked over 1 year ago - Chardon, OH

I am currently getting my wages garnished for past due rent at a place me and my husband lived in. I want to file bankruptsy & supposedly have 2 more garnishments along with still owing $9K on a car that was repo'd coming (although don't remember being served or finding them on my credit report I just got). If I do file bankruptsy does it leave the positive credit on my report & delete only the negative? I still owe maybe $1800 or so on the current wage garnishment & if I file will this stop the garnishment since I already started paying it? I am only making about $435 every 2 wks because of the garnishment supporting 3 people so it is making me limited. If I file, how long until they quit garnishing me-after I do the credit counseling class or what? I just need to get ahead and a fresh st

Additional information

start. I am basically living way below the poverty line and this is making me struggle more-so no way to stop this or lower the payments or anything? I have only made like $10K this year and have been garnished for a while now. And I'm also scared of job termination if I get more wage garnishments as well so how can I do this fast before anymore are filed to go through and if I file before they go through to keep them from going on. I hope this will help my credit some and relieve me of some debt to get ahead in life.

Attorney answers (4)

  1. Amy Lavonne Wells

    Pro

    Contributor Level 14

    5

    Lawyers agree

    Answered . As to the effect of a bankruptcy upon the individuals accounts and judgments, I would encourage you to consult with a bankruptcy attorney who will be able to review your obligations with you, counsel you on your legal options and what type of bankruptcy you qualify for. Most bankruptcy attorneys will consult with you without cost or obligation, so this is what I would suggest as an initial matter.

    As for the impact on your credit report, a fresh start in bankruptcy will have both a positive and negative impact on your credit standing. Of course, the bankruptcy will appear on your credit report, and this will be a derogatory item that will drive down your credit score. Over time, your score will presumably improve as the delinquent accounts become older, and your debt obligations will be greatly diminished. (This is true provided you make payments on time and take steps to rebuild a positive credit history).

    If you file a Chapter 7, the account on your credit report will still reflect the prior account history; so negative information will still report. But the status will show the obligation was discharged in bankruptcy, so you are no longer liable for this. And the amount due and owing would show: $0.00. Since your debt to available credit ratio is big factor in credit scoring, this will benefit your standing.

    A credit account will not be removed for 7.5 years from the date of delinquency. And the bankruptcy will continue to report for 10 years from the date of filing, or the order of relief.

    I hope this helps. Good luck to you!

    NOTE: This Answer does not constitute legal advice. Every case is fact specific. To render a legal opinion, an... more
  2. Meredith Catherine Moriarty

    Contributor Level 3

    2

    Lawyers agree

    Answered . In addition to my colleagues' previous answers, not only will filing a bankruptcy stop the current garnishment the day you file, it will also prevent garnishment by the other creditors who are already "waiting in line". I suggest you consult with a bankruptcy attorney to discuss your situation. From the information you have given, it sounds like bankruptcy might be a good option for a fresh start.

    IMPORTANT LEGAL NOTICE: Ms. Moriarty's response set forth above is not legal advice and it does not create an... more
  3. Sanjay Augustine Paul

    Contributor Level 10

    3

    Lawyers agree

    Answered . Generally speaking, you can stop a wage garnishment even if it is currently taking place by filing a a bankruptcy. A bankruptcy will show on your credit history for 10 years after date of filing.

    As for your credit report; a bankruptcy starts the rebuilding process asap. On the path you're on, the credit rebuilding doesn't start until all your debts are settled.

    Best of luck,

    Sanjay A. Paul, Esq.
    www.dreamlawca.com

    This is not legal advice. No attorney client relationship exists between us.
  4. Jillian K Aylward

    Pro

    Contributor Level 11

    3

    Lawyers agree

    Answered . Filing bankruptcy will stop a wage garnishment. In addition, you can claim return of garnishment collected during the 90 days prior to filing the bankruptcy. Consult a local bankruptcy attorney to answer all of your questions in detail.

    No attorney client relationship is established until both parties sign a retainer agreement. The questioner is... more

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