Wage garnishment can create a sudden financial strain that disrupts your ability to keep up with everyday expenses. When creditors begin taking money directly from your paycheck, it often becomes difficult to cover essentials like rent, utilities, groceries, or medical bills. If you’re facing this situation, understanding your legal options is essential—and one of the most effective tools for stopping garnishment is bankruptcy. For Minnesotans, knowing how the process works can offer both relief and a path toward rebuilding financial stability. Behm Law Group has helped countless individuals navigate these pressures and regain control of their income.
Understanding Wage Garnishment in Minnesota:
Wage garnishment occurs when a creditor receives a court order that allows them to take a percentage of your paycheck to repay a debt. This can happen with credit card debt, medical bills, personal loans, court judgments, or unpaid taxes. Minnesota law typically allows creditors to garnish up to 25% of your disposable earnings—an amount that can significantly impact your financial wellbeing.
Once garnishment begins, it doesn’t stop on its own. It continues until the debt is paid in full, unless you take legal action to prevent or halt it. This is where filing for bankruptcy becomes a highly effective solution.
How Bankruptcy Stops Wage Garnishment?
One of the most powerful features of bankruptcy is the automatic stay. This federal court injunction immediately stops most collection actions the moment a bankruptcy case is filed. That means:
- Wage garnishments must stop
- Bank account levies must stop
- Collection calls must stop
- Foreclosure attempts must stop
- Repossession efforts must stop
The automatic stay gives you critical breathing room and allows you to stabilize your finances. For many people, stopping a wage garnishment is the first major relief they feel after beginning the bankruptcy process.
Chapter 7 Bankruptcy and Wage Garnishment:
Chapter 7 bankruptcy is often a suitable option for individuals who have limited income and want to discharge unsecured debts. When you file Chapter 7, the automatic stay stops the garnishment immediately. The creditor is also prohibited from continuing to pursue collection efforts.
How Chapter 7 Helps:?
Chapter 7 can eliminate the underlying debt responsible for the garnishment, meaning that once your case is complete, the creditor cannot restart the garnishment or attempt new collection efforts.
Additionally, you may be able to recover a portion of wages that were garnished prior to filing if they meet specific legal criteria. Behm Law Group can help you understand whether recovery applies to your case.
Chapter 13 Bankruptcy and Wage Garnishment:
If you have a regular income and want to keep certain assets or manage secured debts, Chapter 13 bankruptcy provides a structured repayment plan supervised by the court. Like Chapter 7, filing Chapter 13 immediately stops wage garnishment through the automatic stay.
How Chapter 13 Helps?
Under Chapter 13, debts are reorganized into a manageable three- to five-year repayment plan. Instead of dealing with the full garnishment amount, your payment plan is based on your income, expenses, and total debts. This often leads to significantly lower monthly payments than the amount taken through garnishment.
Chapter 13 can also help you catch up on mortgage payments, car loans, or tax debts while still stopping other forms of collection.
Which Bankruptcy Option Is Best for Stopping Garnishment?
The best choice depends on your financial situation. Chapter 7 can offer quicker relief and full discharge of qualifying debts, making it ideal for individuals struggling with unsecured creditors. Chapter 13, however, benefits those who need time to reorganize debts, protect property, or stop multiple types of collection actions at once.
No matter which chapter you qualify for, both forms of bankruptcy protect you immediately and completely from ongoing garnishment. Speaking with a bankruptcy attorney ensures you choose the option that best aligns with your long-term financial goals.
Common Debts That Lead to Wage Garnishment:
Many types of debts can lead to garnishment. Understanding which ones apply to your situation helps determine how bankruptcy could help.
Creditors may garnish your wages due to:
- Credit card debt
- Medical bills
- Personal loans
- Court judgments
- Unpaid rent or utilities
- Certain government debts or taxes
Each category is handled differently in bankruptcy, but most unsecured debts can be eliminated entirely. Garnishments related to taxes or government claims may require a more structured approach, which Chapter 13 can provide.
What Happens After You File?
Once you file a bankruptcy petition, the court notifies your employer and the creditor that the garnishment must stop. Employers are legally required to comply. If they do not, they can face penalties. Creditors must also cease any further attempts to collect the debt.
You’ll also begin working with the bankruptcy trustee assigned to your case. This process ensures transparency and fairness while allowing you the protection you need from aggressive creditors.
Can the Creditor Restart Garnishment Later?
If the debt is discharged in Chapter 7, creditors cannot restart the garnishment under any circumstances. For Chapter 13, as long as you continue making your repayment plan payments, creditors cannot resume garnishment.
Once your repayment period is complete and the remaining debts are discharged, creditors lose all legal authority to attempt garnishment again.
Benefits of Stopping Wage Garnishment Through Bankruptcy:
Here is one concise paragraph with some bullet points as requested:
Stopping wage garnishment through bankruptcy offers immediate financial relief and restores control over your income, helping you meet necessary living expenses while working toward long-term stability. Key benefits include:
- Immediate halt to all garnishment
- Protection of your remaining income
- Elimination or reorganization of debt
- Prevention of future creditor harassment
- Opportunity for a fresh financial start
How Behm Law Group Can Help?
Behm Law Group focuses exclusively on bankruptcy law, offering personalized guidance for Minnesota residents facing financial hardship. The firm has extensive experience stopping wage garnishments quickly and effectively while helping clients rebuild their financial future.
Whether you are unsure which chapter fits your needs or overwhelmed by collection pressures, professional legal guidance ensures you make informed, confident decisions.
Contact Us
If wage garnishment is affecting your ability to provide for yourself or your family, Behm Law Group is here to help. Call 507-387-7200 to reach our team for compassionate guidance and dependable legal support.
