Common Problems: Garnishment of Wages

Creditors will often threaten to garnish wages if they are not paid. However, most creditors (including credit card companies and loan companies) cannot garnish a person’s wages without first filing a lawsuit against that person. Once a lawsuit is filed, the creditor may obtain a judgment, which would allow the creditor to garnish wages. A wage garnishment, like all other collection activity, must stop immediately once a bankruptcy case is filed.