The garnishment stops when your case is filed
A garnishment usually follows a judgment in a collection lawsuit, often from the Las Vegas, Henderson or North Las Vegas justice court. Once it starts, it continues every payday until the judgment is paid, and with interest that can take years.
Filing a bankruptcy petition puts the automatic stay in place immediately. No hearing is needed. From that moment the creditor has to stop collecting, including through your paycheck and through bank levies.
We can file quickly
A case can be opened with a skeletal petition, the core official forms, with the full schedules following within 14 days. When someone calls us with a garnishment starting next payroll, that is often how we get the case on file in time.
You pay no attorney fees before filing. The court's $338 filing fee and the roughly $10 credit counseling course are the only costs before your case is filed. See every fee.
Your employer has to be told
The stay takes effect on filing, but your payroll department doesn't watch the bankruptcy court's docket. We notify the garnishing creditor and give your employer the case information. Most garnishments stop within a pay cycle or two. If payroll for the current period has already been processed, that check may still come up short.
Getting back money that was already garnished
This is the part most people don't know to ask about. Under federal bankruptcy law, money a creditor took from you in the 90 days before you filed can sometimes be recovered and returned to you. Whether it can depends on how much was taken (for consumer debts, generally a total of $600 or more), whether the money would have been protected by your exemptions, and the dates.
We handle these recoveries on a 40% contingency, plus costs, under a separate written fee agreement. Our fee and costs come out of what is recovered from the creditor, not from you directly. If you've been garnished recently, bring the dates and amounts to your consultation.
If the creditor keeps collecting after you file
A creditor who knows about your bankruptcy and keeps garnishing or collecting may be violating the automatic stay, and you may be entitled to damages. We handle stay violations on the same 40% contingency, plus costs, under a separate agreement. Tell us right away if money keeps coming out of your check after your case is filed.
What bankruptcy does not stop
- Child support and alimony. Wage withholding for support continues, and these debts are not discharged.
- Some tax collection. Certain tax debts survive bankruptcy, and some enforcement can continue.
- Repeat filings. If a prior bankruptcy case of yours was dismissed within the past year, the stay may be limited or may not apply without a court order. Tell us about any prior filing on the first call.
What to have ready when you call
- The garnishment paperwork from your employer, which names the creditor and the court case
- Your recent pay stubs, showing when the garnishment started and how much has been taken
- Any other lawsuit papers or judgments you've received
Timing matters: when the case is filed relative to your paydays can affect both how fast the garnishment stops and what can be recovered. The full article on garnishment and bankruptcy in Nevada has more detail, and our Chapter 7 page covers the rest of the process.