Best Bankruptcy Lawyers in Boca Raton, FL

In a Chapter 13 bankruptcy, the debtors must begin making payments to the Trustee pursuant to the Chapter 13 plan within 30 days of the date of filing of the petition. The debtors must continue making these payments each and every month for the duration of their Chapter 13 plan, which is typically between 3 and 5 years. It is very important for the debtors to make all of their payments as they come due during the course of their Chapter 13 plan. If they fall behind in their payments, their case may be dismissed by the bankruptcy court upon the request of the Trustee or a creditor.

A Chapter 7 or Chapter 13 case will put an immediate stop to a wage or bank account garnishment. In some cases, a head of household exemption may also stop a garnishment. However, the exemption will typically require a few weeks to take effect and the creditor will still be able to pursue other forms of collection, including future garnishments.

According to Florida Statute 222.11, a head of family whose earnings are $500 per week or less is exempt from wage garnishment. If you are a head of family and you earn more than $500 per week, the amount garnished is calculated based only on the amount you earn in excess of $500.

In some cases you may be able to stop a garnishment by quitting your job. If you're not earning money, the IRS can't take your wages to cover your tax debt. Clearly, this is not an effective idea, but it's something that runs through many peoples' minds when they're dealing with a garnishment.

The garnishment doesn't just hurt your budget, but it can also drag down your credit scores. Although wage garnishments don't appear directly on your credit reports, that doesn't mean they're invisible to lenders.