Can Bankruptcy Stop a Wage Garnishment in Kentucky?

If a creditor has a judgment against you, they can ask your employer to withhold money straight out of your paycheck. Filing for bankruptcy shuts a wage garnishment off: the automatic stay (11 U.S.C. § 362) legally requires the garnishment to stop the moment your case is filed.

Limits that protect you even before filing

The federal Consumer Credit Protection Act caps most garnishments at 25% of disposable earnings (15 U.S.C. § 1673), and it is illegal for an employer to fire you over a single garnishment (15 U.S.C. § 1674).

The permanent fix

The stay pauses the garnishment; the discharge ends it. If the underlying debt is dischargeable, credit cards, medical bills, personal loans, a Chapter 7 case erases the judgment debt itself. Read the full article, cited to primary law, on this page.

By Dalton Stanley · About the author · More from the blog

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Dalton Stanley is the attorney responsible for the content of this website. Principal office located at 156 Ky Oil Village, Betsy Layne, KY 41605. The information provided on this website is for general educational and informational purposes only and does not constitute formal legal advice. Viewing this website or submitting a contact form does not create an attorney-client relationship. Licensed to practice law in the Commonwealth of Kentucky. THIS IS ADVERTISING MATERIAL. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.