Q: am i relieved of wage garnishment when i file for chapter 7 bankruptcy

A: Yes, when you file for bankruptcy, an automatic stay goes into place. This stops any garnishment or bank levy. As soon as you file the wage garnishment would be stopped.

A: A Chapter 7 Bankruptcy will eliminate a wage garnishment unless it is for child or spousal support or if it was for something involving fraud or criminal conduct. With modern technology, you can be represented by any high-quality attorney in New Jersey irrespective of geography. Pick the best attorney you can find and remember one rule: a good attorney is generally never cheap, and a cheap attorney is generally never good so don't choose based on price.

A: While the automatic stay in bankruptcy, which bars all creditors from attempting to procure money or property from the estate after a bankruptcy is filed, is a powerful tool, it does not nullify all such efforts, as a secured claim is treated differently, and somewhat deferentially, in bankruptcy.

On my side of the river, in PA, a secured creditor may justifiably argue that payments procured from a debtor within the 90-day preference period are not avoidable. Similarly, a judgment creditor who has executed upon his judgment and has taken all necessary steps to effect a garnishment upon property of the debtor, is likewise entitled to treatment as a secured creditor. While the filing of a bankruptcy can work a temporary halt to such efforts, the filing of the bankruptcy does not invalidate the perfected lien of the judgment.

Speak to your bankruptcy lawyer about the impact of NJ state law upon applicable bankruptcy principles.

A: Yes, a chapter 7 will relieve your obligation provided you successfully complete same and recieve a discharge, provided that an adversary complaint objecting to discharge is not filed (and successfully litigated).