Bankruptcy and Wage Garnishment: How to Stop It

Introduction

Few things feel more overwhelming than seeing part of your paycheck vanish because of a wage garnishment order. Fortunately, bankruptcy provides immediate relief. Let’s look at how it works, and how you can stop garnishment in Maryland.

What Is Wage Garnishment?

• A court order that allows creditors to take money directly from your paycheck.

• In Maryland, creditors can generally garnish up to 25% of your disposable earnings.

• Common reasons include unpaid credit cards, medical bills, personal loans, and even some judgments.

How Bankruptcy Stops Wage Garnishment

When you file for bankruptcy, the automatic stay goes into effect. This legal protection:

• Immediately halts wage garnishment.

• Forces creditors to stop taking money from your paycheck.

• May allow you to recover some wages garnished after your filing date.

Chapter 7 Bankruptcy and Garnishment

• Can wipe out unsecured debts that led to garnishment.

• Prevents creditors from restarting garnishment once debts are discharged.

• Works best if most of your garnishment is tied to unsecured debts like credit cards or medical bills.

Chapter 13 Bankruptcy and Garnishment

• Stops garnishment and lets you repay missed debts through a 3–5 year repayment plan.

• Especially useful if garnishment is tied to debts you want to repay (like taxes or child support arrears).

• Provides steady relief while allowing you to keep assets.

Exceptions to the Rule

Not all garnishments can be stopped by bankruptcy. For example:

• Child support

• Alimony

• Some recent taxes

These obligations must still be paid, though bankruptcy may help you manage them.

Why Act Quickly?

Every paycheck matters. The sooner you file, the sooner garnishment stops. Waiting only means losing more of your hard-earned income.

Conclusion

Bankruptcy is one of the fastest and most effective ways to stop wage garnishment in Maryland. Whether through Chapter 7 or Chapter 13, you can take back control of your paycheck and start fresh.

Ready to stop creditors from taking your wages? Contact Middleton Legal today for a free consultation.