Garnishments and Oklahoma Bankruptcy Law are settled by years of case law. Garnishments represent some of the most difficult situations you can face. As if its not difficult enough meeting your bills a garnishments crushes your efforts. Sometimes it seems like fighting the garnishment is the best way to get rid of it. Truth is that its very difficult. Once the creditor gets the garnishment stopping it is almost impossible. But, a chapter 7 or 13 will stop the garnishment.
Court Orders Lead to Garnishments in Oklahoma
The process where the creditor gets the garnishment usually begins in Court. This happens when the creditor files a law suite against you for a debt. In most cases the claim adds on other costs for attorney fees and other collection efforts. If that’s not enough the creditor also is entitled to interest that keeps adding up until the debt is paid.
Bankruptcy Stops Garnishments
Filing an Oklahoma bankruptcy stops the garnishment as soon as the bankruptcy is filed. The reason for this is that once the case is filed the automatic stay orders all collection effort against you to stop. Its a great thing. If its a wage garnishment your payroll department is notified and stops the garnishment. In the event the debt that’s being garnished inst forgiven in bankruptcy the garnishment will resume. In order for it to resume the creditor must file a motion with the Court. An example of a garnishment that will continue is child support, student loans and certain taxes.
What if The Garnishment Doesn’t Stop
Most creditors take the automatic stay very seriously. This is important to them because the fines and costs levied against them by the bankruptcy court are stiff. But, in some cases the creditor violates the automatic stay and continues the garnishment. When this happens we file an adversary proceeding within the bankruptcy case. This is when things get difficult for the creditor. The matter gets set in front of the Judge who decides the case. When we win you get damages from the creditor.
Free Bankruptcy Consultation
If you’ve got financial problems and facing a garnishment give us a call. Garnishments and Oklahoma Bankruptcy Law are clear. Once your case is filed in most instances the garnishment is stopped. Chapter 7 or chapter 13 bankruptcy anywhere in Oklahoma we can do it.