Does Bankruptcy Stop Repossessions, Judgments, And Garnishments?

Yes. A bankruptcy filing stops all garnishments, repossessions, foreclosures, lawsuits and other collection actions. If a creditor fails to stop a garnishment after a bankruptcy is filed, they can be held in contempt for violating the court’s order and will be liable for damages they caused you. Money taken from your wages or bank accounts after a bankruptcy is filed might also be recovered.

Category: Chapter 7

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