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I have an IRS Tax lien f or 15%, State of MD lien for 15% and just got a notice from my employer that I will be paying 25% for a credit union personal loan. What is the maximum percentages for garnishments that is allowed by law. I was out of work without pay for 16 months due to cancer/heart surgery. When I returned to work and attempted a good faith effort to pay creditors, i was informed about the garnishment. I met with a bankruptcy attorney and qualify for chapter 7 due to no income for the previous 6 months. Trying to ride it out because I have a malpractice suit that will be filed next week. What impact will the suit have on the chapter 7? Do I have to inform the bankruptcy trustee once filed? if bankruptcy is discharged before suit settled what happens?