Can My Wages Be Garnished After I File Bankruptcy?

Washington wage-garnishment limits depend on the type of debt and the applicable exemptions. The calculation uses disposable earnings, meaning earnings after deductions required by law, rather than a blanket percentage of gross wages. Sources: RCW 6.27.010(2); RCW 6.27.150. Filing bankruptcy generally starts an automatic stay that stops many collection actions, including many wage garnishments. Exceptions apply, prior filings can limit protection, and a court can grant relief from the stay. Source: 11 U.S.C. § 362(a)–(d).

Notify Your Attorney and Payroll Promptly

If your wages are being garnished, promptly give your attorney the garnishment papers, payroll contact information and next payday. The bankruptcy court sends notice to listed creditors, and timely notice to the creditor, its attorney and payroll is important. Source: U.S. Courts: Chapter 13 bankruptcy. Do not assume a deduction already being processed will disappear from your next paycheck. If withholding continues after filing, contact your attorney so the timing, debt and available remedies can be reviewed.

Exceptions to the Automatic Stay

Bankruptcy does not stop every garnishment. Income withholding for domestic support obligations, including child support or spousal support, can continue under a statutory exception. Recent dismissed bankruptcy cases can also limit the stay or prevent it from arising automatically. Source: 11 U.S.C. § 362(b)(2)(C), (c)(3)–(4). Tell your attorney about every prior filing and any support obligation.

What Happens to Wages Already Withheld?

The answer depends on when the wages were earned, withheld and transferred, whether the automatic stay applies, and other facts of the case. A refund is not automatic. Sources: 11 U.S.C. § 362(a), (k); 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i). Your attorney can review whether funds may be released or recovered and what legal steps are required.

Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 3,000 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a).

But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.

Christopher Benson