Will filing for bankruptcy keep the bank from garnishing my wages? - Bankruptcy Law Questions and Answers- LawQA.com

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Will filing for bankruptcy keep the bank from garnishing my wages?

If we have an unsecured loan for $150,000, which cannot be paid, and the bank will not settle, but instead sues us in court and wins, can they garnish wages from our paycheck and/or touch our 401K? Secondly, if they win, will filing bankruptcy save us from paying this debt? Thank you!

Mercado & Hartung, PLLC
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the BK will stop the garnishment. If it's unsecured, it will likely be discharged. Your 401K is probably exempt

Answer Applies to: Washington
Replied: 8/10/2011

Answer By Kevin Heupel
Heupel Law
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Yes, bankruptcy puts a “stay” in place that prevents creditors from garnishing your bank accounts and wages.

Answer Applies to: Colorado
Replied: 8/9/2011

Answer By Eric Benzer
Eric J. Benzer, Attorney at Law
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Yes

Answer Applies to: Maryland
Replied: 8/6/2011

Answer By Joseph W. Lehn
Lehn Law, PA
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Once a person files for bankruptcy protection all garnishments must stop as required by the automatic stay. 401K's are a protected asset in bankruptcy.

Answer Applies to: Florida
Replied: 8/4/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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Bankruptcy will discharge the debt completely. Yes they can garnish wages, levy on bank accounts etc. They cannot levy on any qualified retirements.

Answer Applies to: California
Replied: 8/2/2011

Theodore N. Stapleton, PC
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Yes a bankruptcy filing will stay any garnishments or other collection actions and yes you can probably discharge the debt in a chapter 7. I am happy to discuss your options with you. Please call to schedule a free consultation.

Answer Applies to: Georgia
Replied: 8/2/2011

Answer By Ray Fisher
Ray Fisher Law Offices
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Question: Will filing for bankruptcy keep the bank from garnishing my wages? Yes and so will Texas law if you do not file Question Detail: If we have an unsecured loan for $150,000, which cannot be paid, and the bank will not settle, but instead sues us in court and wins, can they garnish wages from our paycheck and/or touch our 401K? Not in Texas. Secondly, if they win, will filing bankruptcy save us from paying this debt? Yes Telephone:

Answer Applies to: Texas
Replied: 8/1/2011

Answer By Alan D. Walton
Breckenridge and Walton
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Generally yes. Garnishment can only happen with a judgment. Your pay can be garnished up to 25%. The 401(k) is 100% protected. Assuming fraud was not involved in the debt, bankruptcy would eliminate it so further collection could not occur.

Answer Applies to: Michigan
Replied: 8/1/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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In many states, a debt reduced to judgment can result in wage garnishment. Bankruptcy stops wage garnishments.

Answer Applies to: Indiana
Replied: 8/1/2011

Bankruptcy Law office of Bill Rubendall
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When bankruptcy is filed it creates an automatic stay against garnishment. Also, exemptions can be claimed in bankruptcy, which includes 401 assets.

Answer Applies to: California
Replied: 8/1/2011

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