Can Bankruptcy Stop Garnishment?

In most cases, but not all, filing bankruptcy will stop garnishment.

The filing of a bankruptcy starts an “automatic stay” under 11 U.S.C. §362.  This stay functions like an injunction or order prohibiting creditors from taking legal actions such as garnishment against the debtor or the debtor’s property.  The stay may also stop a foreclosure (at least temporarily) or prevent the continuation of a lawsuit while the bankruptcy is pending.

However, the automatic stay has some limitations.  Generally it will not stop a criminal action against the debtor.  It will not stop actions to establish paternity, child custody or visitation.  It may not apply to parts of divorce actions.  It will not stop the collection of domestic support obligations ordered by a court such as child support or alimony (spousal maintenance).

Thus, a garnishment to collect child support will probably not be stopped by filing bankruptcy.

In many cases bankruptcy will do more than stop a garnishment before it is filed. A bankruptcy may be used to recover funds already garnished.  If wages or other funds are now being garnished, or if money or other property has been garnished recently, you should consult a lawyer immediately.  It may be possible to recover all or part of the funds.  Your right to recover garnished funds depends on how quickly you respond after garnishment, the amount garnished, the property you may be able to exempt and other factors.