A wage garnishment is one of the most damaging things a creditor can do. In Idaho, a creditor with a judgment can take up to 25% of your disposable earnings every pay period until the debt is paid in full, and they will. Filing bankruptcy puts a stop to it.
What happens the moment we file
- The automatic stay engages instantly. By federal law, your employer must stop withholding by the next pay period. The bankruptcy court notifies the creditor and the employer.
- Lawsuits halt. Any pending collection lawsuit is stayed. Trial dates, motions, and judgments freeze in place.
- Calls stop. Federal law prohibits creditors from contacting you about pre-filing debts. Violations carry penalties we can collect on your behalf.
- Bank account levies stop. If a creditor has levied or is about to levy your bank account, the stay blocks it.
How fast we can file
As fast as 48 hours from your first call in urgent situations. The limiting factor is usually the federally required credit counseling course, which you complete online in about 60 minutes. We handle the rest.
Can the garnished money come back?
In some cases, yes. Garnishment funds taken within 90 days of filing may be recoverable if the total exceeds the statutory minimum. We review the math at your free consultation.
Will my employer find out?
They already know. The garnishment came from a court order they received. Filing bankruptcy stops the garnishment, which is the only outcome your employer cares about. Federal law specifically prohibits firing or disciplining an employee for filing.
Which chapter?
Most garnishment cases resolve through Chapter 7: file, stay kicks in, debt discharged in 90 days. If you don't qualify for Chapter 7 or have other reasons to stay current with secured debts, Chapter 13 stops the garnishment just as effectively.