One of the major benefits to filing a bankruptcy petition in Maryland is the automatic stay. It can be helpful in stopping most collection actions against you, including wage garnishments that are not a result of child support or child support arrears, or recent income tax arrears. Not only do some of these garnishments stop immediately upon the filing of the bankruptcy petition, but we are also able to recover up to 90 days worth of garnishment withholdings that were taken prior to the filing of the petition.
In a recent case we handled, which was brought into our office due to the wage garnishment, we were able to not only stop the garnishment, but we eliminated roughly $20,000 in additional unsecured debt for the client, and received a refund from the garnishment that was roughly equivalent to the amount of the fee the client paid our office to handle the proceedings. It was basically a free bankruptcy filing, plus the added benefit of all of the discharged debt!
Should be be in a position where you’re dealing with a non-child support or recent income tax wage garnishment contact our office at 410-885-6200 to discuss your options with one of our Maryland bankruptcy attorneys.
We often get calls from prospective clients for debt relief and/or bankruptcy by people who are overwhelmingly being harassed by creditors calling to try to receive payments on open accounts, or work out payment plans or other payments.
These calls often are made at all hours, and now are being made on home phones, cell phones, and even at places of employment.
Bankruptcy Can Stop Creditor Calls!
To obtain relief from creditor harassment, you can file for bankruptcy. Telling a creditor you are going to do it is not enough. Creditors know this, and will not stop bothering you until they receive the order from the court. They know that once you file for bankruptcy protection, they will probably be unable to collect all of the debt.
Here are the procedures by which a bankruptcy filing will stop creditor calls:
• Immediately upon the filing of your bankruptcy case, the bankruptcy court issues an order that stops all collection efforts against you. The order issued by the bankruptcy court is called the “Automatic Stay.”
• After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules.
• Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with case number.
• If a creditor continues to call you or contact your employer, the court may impose fines, punitive damages and even jail time because of the court order violation.
• If your case is discharged, then creditors and their collection companies are permanently prohibited from contacting you unless they have received special permission from the Bankruptcy Court, or your debt is one that is exempted from your discharge.
Filing of a bankruptcy case really does give you a fresh start. Eliminating the debt allows you to start over, rebuild your credit, remove the stress and threat, and move on with your life.
For more information on filing a Bankruptcy, contact our office at 410-885-6200.