Ways to Stop Bank Account Garnishment in Bankruptcy

Stop Garnishment Through Bankruptcy!

If you are looking for ways to stop bank account garnishment in Bankruptcy, our experienced attorneys can help you. In this blog post, we will explore actionable strategies to stop bank account garnishment through the bankruptcy process specifically in Mississippi. By understanding your options and seeking professional guidance, you can regain control of your finances and protect your bank account from further garnishment. As we go along, we are going to talk about the following topics:

• What is Bankruptcy?
• What are the Types of Bankruptcy?
• What is a Bank Account Garnishment?
• How Does Wage Garnishment Work in Mississippi?
• How Can I Stop Bank Garnishment Through Filing Bankruptcy?

Ready to regain control of your finances and stop bank account garnishment in Mississippi? Contact The Rollins Law Firm today for sound legal guidance and personalized solutions. Our experienced bankruptcy attorneys will assess your situation, explain your options, and develop a strategic plan to protect your bank account! 

What is Bankruptcy? 

A legal procedure known as bankruptcy is intended to give people and corporations that are drowning in debt a fresh financial start. When a debtor announces they are unable to pay their debts, it is known as a legal declaration of insolvency. Debtors who file for bankruptcy are given some protection from creditors as well as the ability to reduce or modify their debts. 

What are the Types of Bankruptcy?

In Mississippi, individuals and businesses have access to various types of bankruptcy proceedings to address their financial situations. The most common types of bankruptcy available in Mississippi are Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

Chapter 7

Chapter 7 bankruptcy, also referred to as “liquidation bankruptcy,” is the most popular type of bankruptcy for people. Non-exempt assets must be liquidated in order to pay creditors. 

However, many different kinds of assets are protected, including some exemptions and necessities for daily life. Following the liquidation procedure, the remaining qualifying obligations are normally canceled, giving the debtor an opportunity for a fresh start. 

Chapter 11 

Chapter 11 bankruptcy is generally intended for businesses, while it can also be used by individuals with heavy debts or complicated financial situations. It enables the debtor to continue doing business while reorganizing their debts and activities.

 Putting up a plan to reorganize debts, settling with creditors, and getting court approval are all part of Chapter 11. It offers a chance for companies or people to recover their financial stability and carry on with their operations.

Chapter 12 

Family farmers and fishermen who have a consistent annual income are especially well-suited for Chapter 12 bankruptcy. They can create a repayment strategy to restructure and pay off their debts over time. 

One of the unique features of Chapter 12 bankruptcy includes measures that acknowledge the seasonal nature of agricultural and fishing operations and offer distinct advantages for individuals working in these sectors.

Chapter 13

Chapter 13 bankruptcy, sometimes known as “reorganization bankruptcy,” is an option for those who have a steady source of income and want to designate a repayment schedule to pay off their obligations over the course of three to five years.

 In order to repay creditors from future income, the debtor submits to the bankruptcy court a plan explaining how they will do so. The debtor can receive debt relief and keep their assets if the court approves the plan and they follow it.

The Rollins Law Firm can help you identify what type of bankruptcy that suits your case. Contact us today. 

What is a Bank Garnishment? 

Bank account garnishment, also known as bank levy, is a legal process where a creditor seeks to collect a debt by accessing funds directly from a debtor’s bank account. In the context of bankruptcy, it involves the collection of outstanding debts from the debtor’s bank account through court-authorized means.

Process of Bank Garnishment 

This is how Bank Garnishment works:

• Creditor Lawsuit: Prior to bank account garnishment, a creditor typically files a lawsuit and obtains a judgment against the debtor, establishing the debt’s validity and the right to pursue collection.
• Court Order: Once a judgment is obtained, the creditor can request a court order for bank account garnishment. This order allows the creditor to freeze the debtor’s bank account and seize funds to satisfy the outstanding debt.
• Notification: The bank, upon receiving the court order, freezes the debtor’s account and notifies the account holder about the garnishment. This notification provides an opportunity for the debtor to challenge the garnishment and assert any applicable exemptions.

Our attorneys can guide you throughout the process of stopping bank account garnishment. Don’t hesitate to give us a call now to schedule a consultation! 

How Can I Stop Bank Garnishment Through Filing Bankruptcy?

Bank garnishment occurs when a creditor legally seizes funds from your bank account to satisfy a debt. This process can disrupt your financial stability and make it challenging to meet essential expenses. However, by taking timely action and filing for bankruptcy, you can invoke the automatic stay, a powerful legal protection that puts an immediate stop to bank garnishment and other collection activities.

The Automatic Stay’s Role in Bank Garnishment

When you file for bankruptcy, an automatic stay goes into effect, providing you with immediate relief. The automatic stay legally prohibits creditors from continuing their collection efforts, including bank garnishment. This protection allows you to regain control of your funds and focus on resolving your financial difficulties through bankruptcy proceedings.

4 Ways to Stop Bank Garnishment:

• Consult with a Bankruptcy Attorney: Seeking the guidance of an experienced bankruptcy attorney is crucial in understanding your rights, exploring your options, and determining the most appropriate bankruptcy chapter for your situation.
• Filing the Bankruptcy Petition: Once you’ve decided to pursue bankruptcy, your attorney will assist you in preparing and filing the necessary bankruptcy petition. This triggers the automatic stay, instantly stopping bank garnishment and other collection actions.
• Reorganization or Discharge: Depending on your circumstances, your attorney will guide you through either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 may lead to the discharge of eligible debts, while Chapter 13 involves creating a repayment plan to satisfy your debts over time.
• Communicating with Creditors: Your bankruptcy attorney will handle communication with creditors, notifying them of the automatic stay and directing them to contact your legal representative instead. This relieves you of the burden of dealing directly with creditors and ensures compliance with the bankruptcy process.

Our Attorneys Can Find Ways To Stop Bank Account Garnishment in Bankruptcy for You!

Ready to put an end to bank account garnishment and reclaim control of your finances in Mississippi? Our experienced attorneys at The Rollins Law Firm are here to help. We are well-versed with bankruptcy law and we can find effective strategies to stop bank account garnishment through the bankruptcy process. 

Don’t let garnishment drain your resources any longer. Take action now by scheduling a consultation with our skilled attorneys. We’ll develop a personalized plan to protect your bank account and achieve a brighter financial future. Contact us today and let us fight for your financial freedom!