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Will Filing A St. Louis Bankruptcy Stop A Wage Garnishment?


Yes, it will. Filing a St. Louis bankruptcy will also stop a bank levy (in which the creditor puts a freeze on your checking account, making it impossible for you to gain access to your money), it will stop any lawsuits filed against you personally (like when a creditor sues you for breach of contract on a credit card), it will stop a foreclosure of your home, it will stop the repossession of your car, and most importantly, it will give you a chance to rebuild your finances with a fresh start in life.

Wage garnishments are the primary tools that creditors use to get money out of you. But before they can begin to garnish your wages, the creditor must first file a suit against you, have you properly served with a summons, and receive from the judge a favorably ruling (the only exception to this rule is for student loans; the student loan companies do not have to go through these steps, and can simply garnish your wages administratively). Once the creditor has a judgment in hand, it may then execute the garnishment.

Normally, your payroll department will let you know that a garnishment is about to take place, but they are under no legal duty to do so. Legally, the highest percentage that a creditor may take from any one paycheck is 25% of your net earnings (in other words, twenty-five percent of your take-home pay). This can be taken down to 10% if you claim Head-of-Household status.

But if you file for bankruptcy, this wage garnishment is automatically halted, and the underlying debt is discharged. This is true regardless of which chapter of bankruptcy you file: St. Louis Chapter 7 or a St. Louis Chapter 13.

An expert St. Louis bankruptcy attorney at The Bankruptcy Company can help you achieve this result very quickly. We charge $750 in attorney fees for a Chapter 7, and $300 of fees upfront for a Chapter 13. Our goal is to make sure that you get a new beginning in life, get rid of all your unsecured debts (like credit cards and medical bills), and keep all of your assets (like your house and car). We offer a free consultation to discuss your debt issues. We are located at 1North Taylor, St. Louis, MO 63108; and we also have offices in Crystal City, MO, at 1000 Truman Blvd (61/67 Highway), 63019. Contact us today to learn more!! 314-932-1067

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