Can You Get Garnished Wages Back After Filing Bankruptcy?

While many people know that you can stop a wage garnishment by filing bankruptcy, others still wonder, “What happens to the money that they’ve already garnished?” Typically, you can get that money back. You may even be able to get it back from the creditors if they already have it under certain sections of the bankruptcy code.

You can recover some of your garnished wages through a bankruptcy process called preference. The U.S. Bankruptcy Court defines a preference as, “a debt payment made to a creditor in the 90-day period before a debtor files bankruptcy that gives the creditor more than the creditor would receive in the debtor’s chapter 7 case.” A preference means that money that was collected by the creditor in a certain period of time before filing (usually 90 days) can be recovered and given back to you.

Go ahead and say it. “Woo Hoo! I can get back to a normal life!” Bankruptcy can provide hope when you think that everything has gone dark. Getting your wages back is just one example of what it can do for you. Bankruptcy can also stop harassing creditor calls, eliminate your unsecured debts (like that credit card debt you’ve been itching to get rid of), and even save your home. So, the question to ask yourself is, is bankruptcy right for you?

If you think  you are at risk for wage garnishment, or your hard-earned money is already being taken, bankruptcy may be an option to help you get your life back. But, before you speak to a Missouri bankruptcy lawyer, debt collectors or sign any forms, you need to read my free book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” Click here to request your FREE copy.