Will bankruptcy stop wage garnishments?

In almost all cases, filing a bankruptcy case will stop wage attachments and garnishments. Creditors have to respect the “automatic stay” on collections activity that goes into place once you file. An important exception is child-support deductions from your pay. These can’t be eliminated or reduced through bankruptcy, although you may be able to use a Chapter 13 bankruptcy case to pay off a past-due child-support arrearage over time.

Wage attachments aren’t as common in Massachusetts and New Hampshire as they are in some other parts of the country, but they do occur. Some of the most aggressive pursuers of wage attachments are the Internal Revenue Service and the Massachusetts Department of Revenue. If you get an attachment from them, its time to call an attorney right away!

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