Your Paycheck Is Being Garnished — Here’s How to Stop It

If a creditor is garnishing your wages, you already know the devastating impact: your paycheck shrinks, bills pile up, and it can feel like you’re falling further behind with every pay period. In Pennsylvania, creditors can garnish up to 25% of your disposable earnings once they obtain a court judgment — and that’s on top of any existing tax levies or child support obligations.

The good news: bankruptcy can stop wage garnishment immediately, and in many cases, it’s the fastest and most effective tool available. At the Siddons Law Firm, we have helped hundreds of Pennsylvania workers stop garnishments and regain control of their finances.

How the Automatic Stay Stops Garnishment

The moment you file a bankruptcy petition — whether Chapter 7 or Chapter 13 — a powerful federal protection called the automatic stay goes into effect under 11 U.S.C. § 362. This court order immediately prohibits creditors from:

✅ Continuing any wage garnishment — Your employer is notified and must stop withholding garnished amounts from your paycheck.

✅ Filing new lawsuits against you — Creditors cannot pursue additional collection actions while the stay is in effect.

✅ Contacting you about debts — Collection calls, letters, and harassment must stop.

✅ Seizing your bank accounts — Any pending bank levies are halted.

In urgent cases, we can file an emergency bankruptcy petition to get the automatic stay in place within 24 to 48 hours.

Can I Get Back Wages That Were Already Garnished?

In some cases, yes. Under bankruptcy law, if a creditor garnished your wages within 90 days before your bankruptcy filing and the total garnished amount exceeds $600, the bankruptcy trustee may be able to recover those funds as a “preferential transfer” under 11 U.S.C. § 547. This recovered money becomes part of your bankruptcy estate and may be returned to you through applicable exemptions.

This is one reason why timing your bankruptcy filing strategically matters — and why consulting with an experienced bankruptcy attorney before filing is so important.

Chapter 7 vs. Chapter 13: Which Stops Garnishment Better?

Chapter 7 bankruptcy stops garnishment and can eliminate the underlying debt entirely — typically within 3-4 months. If the debt being garnished is an unsecured debt like a credit card, medical bill, or personal loan, Chapter 7 may wipe it out completely. You must qualify through the means test, which compares your income to Pennsylvania’s median income levels.

Chapter 13 bankruptcy also stops garnishment immediately, but instead of eliminating debts outright, it restructures them into a manageable 3-5 year repayment plan. Chapter 13 is often the better choice when you have debts that can’t be discharged in Chapter 7 (like certain tax debts or domestic support obligations), or when you need to protect assets that might be at risk in a Chapter 7 case.

Both chapters stop garnishment the moment you file. The best choice depends on your specific financial situation, income level, and goals.

Types of Garnishment Bankruptcy Can Stop

🔹 Credit card judgments — The most common garnishment type, and fully dischargeable in both Chapter 7 and Chapter 13.

🔹 Medical debt judgments — Garnishments from hospital and doctor bills can be stopped and the debt eliminated.

🔹 Personal loan and payday loan judgments — These garnishments stop immediately upon filing.

🔹 Bank account levies — If a creditor has frozen your bank account, the automatic stay can release those funds.

🔹 Tax garnishments — While more complex, bankruptcy can stop IRS and state tax wage levies. Income taxes more than 3 years old may even be dischargeable.

Note: Bankruptcy generally cannot stop garnishments for domestic support obligations (child support and alimony) or certain criminal restitution orders. However, even in those cases, eliminating other debts through bankruptcy frees up more of your income to meet those obligations.

Frequently Asked Questions — Wage Garnishment & Bankruptcy

How quickly can bankruptcy stop my wage garnishment?

In most cases, we can file an emergency petition within 24-48 hours. The automatic stay takes effect the moment the petition is filed with the bankruptcy court. We immediately notify your employer and the garnishing creditor. Most employers stop withholding garnished wages from the very next paycheck.

Will my employer know I filed bankruptcy?

Your employer will receive a notice to stop the garnishment, which does indicate you filed bankruptcy. However, federal law (11 U.S.C. § 525) prohibits employers from firing you or discriminating against you solely because you filed bankruptcy.

What if I have multiple garnishments?

The automatic stay stops all garnishments simultaneously — not just the one from the creditor that filed the lawsuit. If multiple creditors are garnishing your wages or have pending judgments, a single bankruptcy filing addresses them all at once.

Can a creditor start garnishing my wages again after bankruptcy?

If the debt is discharged (eliminated) in bankruptcy, the creditor can never garnish your wages for that debt again. The discharge is permanent. If a creditor violates the discharge by attempting further collection, they can be held in contempt of court and required to pay you damages.

Related Resources

• Chapter 13 Bankruptcy
• Chapter 7 vs Chapter 13: Which Is Right for You?
• Complete Guide to Filing Bankruptcy in PA
• Bankruptcy FAQ
• Can I Keep My Car If I File Bankruptcy?

This communication is from a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.