How to Stop a Wage Garnishment in Oklahoma

A garnishment usually arrives the same way. A creditor sued you, maybe years ago, maybe on a debt you had forgotten about, and got a judgment. Now part of every paycheck disappears before it reaches your account, and the next check will look the same.

Filing bankruptcy stops it. The moment a Chapter 7 or Chapter 13 petition is filed, federal law puts an automatic stay in place that halts collection lawsuits, the enforcement of judgments, and garnishments. 11 U.S.C. § 362(a). No hearing is required and no judge has to sign anything. The filing itself does it.

How fast it actually stops

The stay takes effect when the case is filed, but your employer's payroll department has to find out about it. We send notice of the filing to the creditor, its lawyer, and your employer right away. Depending on where your pay cycle falls, one more check may be hit before payroll catches up. Money taken after the filing date is taken in violation of the stay, and the creditor has to give it back.

What Oklahoma already protects

Even without bankruptcy, Oklahoma law protects 75 percent of the wages you earned in the last 90 days from creditors. 31 O.S. § 1(A)(18). That protection limits how much a garnishment can take. It does nothing about the debt itself, which keeps growing with interest while the garnishment runs.

What bankruptcy does not stop

The stay has exceptions. Income withholding for child support or alimony keeps going. 11 U.S.C. § 362(b)(2)(C). And if you had a bankruptcy case dismissed in the past year, the stay in a new case can end after 30 days unless the court extends it. 11 U.S.C. § 362(c)(3). If either of those applies to you, we need to know before we file.

Chapter 7 or Chapter 13

If the garnishment comes from a credit card judgment, a medical bill, or a deficiency after a repossession, Chapter 7 will usually wipe out the debt, not just pause the garnishment. Once the discharge is entered, that creditor cannot come back for it.

If you are also behind on a house or car, or your income is too high for Chapter 7, Chapter 13 stops the garnishment and rolls your debts into one court-supervised monthly payment.

Don't wait for the third paycheck

Every garnished check is money you do not get back. People often wait until the third or fourth one before they call, and every one of those checks is gone for good.

If a garnishment has started, or you have been served with a lawsuit on a debt, act now. Call (918) 221-6190 or request a consultation. The first consultation is free, and you will talk with me directly, not a screener.

Related: Tulsa bankruptcy attorney; Can Chapter 13 Save My House or Car in Oklahoma?; What Happens at the 341 Meeting in a Tulsa Bankruptcy?; Filing Bankruptcy Without a Lawyer: What the Court Records Show.

This article is general information about Oklahoma and federal bankruptcy law, not legal advice for your situation. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.