Wage garnishment can be a difficult situation for anyone to face. If you are facing wage garnishment in Florida, you may be wondering if bankruptcy can help you stop it. The short answer is yes, but there are certain requirements and considerations to keep in mind. In this article, we will explore how bankruptcy can stop wage garnishment in Florida, the types of bankruptcy you can file, and the pros and cons of using bankruptcy to deal with wage garnishment.
Can Bankruptcy Stop Wage Garnishment in Florida?
Yes, bankruptcy can stop wage garnishment in Florida. When you file for bankruptcy, an automatic stay is put in place. This stay prevents creditors from taking any further action against you, including wage garnishment. This means that if your wages are currently being garnished, filing for bankruptcy can put a stop to it.
Types of Bankruptcy You Can File:
There are two main types of bankruptcy that individuals can file: Chapter 7 and Chapter 13. Each type has its own requirements and considerations.
Chapter 7 Bankruptcy:
Chapter 7 bankruptcy is also known as a “liquidation” bankruptcy. This type of bankruptcy is meant for individuals who do not have the means to pay off their debts. In a Chapter 7 bankruptcy, your non-exempt assets are sold to pay off your debts. Any remaining debts are then discharged, meaning you are no longer responsible for them.
Chapter 13 Bankruptcy:
Chapter 13 bankruptcy is also known as a “reorganization” bankruptcy. This type of bankruptcy is meant for individuals who have a regular income but are struggling to keep up with their debt payments. In a Chapter 13 bankruptcy, you create a repayment plan to pay off your debts over a period of three to five years.
Requirements for Filing Bankruptcy to Stop Wage Garnishment:
In order to file for bankruptcy to stop wage garnishment, you must meet certain requirements. These requirements include:
- For Chapter 7 bankruptcy, there is no specific amount of debt required, but there are income requirements. For Chapter 13 bankruptcy, your debts as of the time of filing bankruptcy cannot exceed $2,700,000.
- You must have a regular income. In order to file for Chapter 13 bankruptcy, you must have a regular income to be able to make your repayment plan payments.
- You must not have filed for bankruptcy recently. If you have filed for chapter 7 bankruptcy and obtained a discharge, you have to wait 8 years from the date field to seek a new discharge in a new chapter 7 filing. For filing a chapter 13 after a chapter 7, the wait period is reduced to 4 years. You can learn more about repeat filings by reading our article on How Often Can You File Bankruptcy? (2022).
Pros and Cons of Filing for Bankruptcy to Stop Wage Garnishment:
Pros:
- Bankruptcy can stop wage garnishment and other collection actions.
- Bankruptcy can eliminate most or all of your debts.
- Bankruptcy can give you a fresh start.
Cons:
- Bankruptcy can be expensive.
- Bankruptcy can have a negative impact on your credit score.
- Chapter 7 Bankruptcy can stay on your credit report for up to 10 years.
- Chapter 13 can stay on your credit report for up to 7 years.
FAQs:
Q: How long does an automatic stay last?
A: In a chapter 7 bankruptcy, unless the court grants stay relief, the automatic stay lasts for the duration of your bankruptcy case. You can read our blog on What Is an Automatic Stay In Chapter 7 Bankruptcy? for more insight.
Q: Can all types of debt be discharged in bankruptcy?
A: No, some types of debt cannot be discharged, such as student loans and most tax debts.
Q: Can I choose which type of bankruptcy to file?
A: Yes, you can choose which type of bankruptcy to file based on your financial situation and goals.
Conclusion:
If you are facing wage garnishment in Florida, bankruptcy can be a way to stop it. When you file for bankruptcy, an automatic stay goes into effect, which prevents creditors from continuing to collect on debts, including wage garnishment. However, there are requirements to file for bankruptcy, as well as potential drawbacks to consider.
If you are considering bankruptcy to stop wage garnishment, it is important to consult with an experienced bankruptcy attorney. They can help you understand your options, guide you through the process, and help you determine if bankruptcy is the right choice for your situation.
In conclusion, can bankruptcy stop wage garnishment in Florida? Yes, it can. By filing for bankruptcy, you can stop wage garnishment and other collection actions, giving you a fresh start and a chance to rebuild your financial future. However, filing for bankruptcy is a major decision that should not be taken lightly. We hope this article has provided you with a better understanding of how bankruptcy works, and the factors to consider when deciding whether to file.
