Bankruptcy is an effective tool for protection against wage garnishments and judgment liens. After you file bankruptcy, an automatic stay goes into effect, stopping all collection and legal actions taken against you regarding your debt.
Creditors are prohibited from garnishing your wages after you file your bankruptcy papers with the court. Government agencies are also prohibited from recovering overpayments as long as there is no fraud involved.
If you already have a wage garnishment, filing bankruptcy will stop that process also until the outcome of your case. Legal judgments can also be removed as long as it didn’t create a lien against your property. If there is no lien attached, bankruptcy will wipe away the garnishment and lien as if they never existed.
If the judgment did create a lien against your property, you might ask the bankruptcy court to remove the lien if it affects exempt property. Without the bankruptcy protection, a lien may allow your creditor to seize some of your property.
If your wages are already attached or about to be, contact a Dallas bankruptcy attorney to find out how you can stop that action and keep your paycheck.