Has a creditor sued you, got a judgment and is now garnishing you? If so, read on.
Kansas Garnishment Law
The garnishment laws in Kansas allow a creditor to take 25% of your net disposable income. This means the money left over after your taxes, insurance and other withholding are deducted from your paycheck. Most people are not able to withstand a wage garnishment for very long without getting behind on normal bills like utilities, car payments, student loan payments or rent and/or mortgage.
The Automatic Stay
When a Chapter 7 or 13 Bankruptcy is filed, the automatic stay goes into effect and creditors are required to stop garnishing wages. This automatic stay even applies to heavy hitters like the federal government collecting IRS taxes or student loans. The automatic stay is incredibly powerful and is one of the reasons why filing for relief under the bankruptcy code allows debtors to get a fresh start.
How Quickly Will The Garnishment Stop?
It really depends on when you file. A creditor is allowed to garnish a debtor up until the day a Chapter 7 or Chapter 13 Bankruptcy is filed. If a bankruptcy is filed before a garnishment begins to take effect, then it is likely wages will not be garnished. If a garnishment is already in effect, then there will likely be a partial garnishment on the upcoming paycheck.
To Learn More About Filing Chapter 7 or 13 Bankruptcy Can Stop Garnishments, Call Chris W. Steffens, a Kansas Licensed Bankruptcy Lawyer