Will bankruptcy stop a garnishment or execution?

Full question:

Will bankruptcy stop a garnishment or execution?

Answer:

Filing bankruptcy does offer protection from garnishment of debtor's wages and from execution of judgments. This protection is available immediately upon the filing of the petition for bankruptcy, through the automatic stay. The automatic stay prohibits creditors from taking any action against the debtor, such as garnishments, executions or any other type of action designed to collect on a debt. Any violations of the stay by a creditor will result in severe penalties imposed by the trustee.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Filing for bankruptcy before a judgment can be beneficial. It provides immediate protection from creditors, preventing them from obtaining a judgment against you and pursuing garnishments or executions. If you anticipate financial difficulties, filing for bankruptcy sooner may help you avoid additional legal actions and protect your assets.