Debts
Does bankruptcy stop wage garnishment?
Filing a bankruptcy petition triggers the automatic stay, which generally stops wage garnishments. It arises when you file and needs no action by a judge. Garnishment for domestic support obligations such as child support is an exception. If the underlying debt is discharged, creditors are barred from trying to collect it from you personally afterward.1 2 3
Connect to a bankruptcy lawyerGenerally yes, through the automatic stay, with exceptions such as child support. This page covers the federal limits on garnishment, what filing changes, what happens to a court judgment, and how student loan garnishment differs.
General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.
In this guide
What is wage garnishment?
A wage garnishment is a legal procedure that requires part of your earnings to be withheld to pay a debt. Most garnishments are made by court order. Others include tax levies and federal agency administrative garnishments for non-tax debts owed to the federal government.4
The federal limits are based on disposable earnings, meaning what is left after legally required deductions such as taxes and Social Security.4
How much of your pay can be garnished outside bankruptcy?
| Type of debt | Federal limit |
|---|---|
| Ordinary debts4 | The lesser of 25% of weekly disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage |
| Child support and alimony4 | Up to 50% of disposable earnings for a worker who supports another spouse or child, or 60% otherwise, plus 5% more for arrears older than 12 weeks |
| Federal student loans not being repaid as required5 | No more than 15 percent of disposable pay, unless the borrower agrees in writing to more |
| Federal or state tax debts and certain bankruptcy court orders4 | The federal limits do not apply |
Federal law also bars an employer from firing a worker because the worker's wages are garnished for any one debt.4
What does filing bankruptcy do to a garnishment?
The automatic stay stops most collection actions against you or your property, and garnishments are on that list. While the stay is in effect, creditors generally may not start or continue lawsuits, wage garnishments or even phone calls demanding payment.1 2
The bankruptcy clerk sends notice of the case to the creditors you list.2
The stay has limits.
- Domestic support: the stay does not stop collection of child support or similar support from property that is not part of the bankruptcy estate.6
- Repeat filings: if you had one case dismissed in the past year, the stay in a new case generally ends after 30 days unless the court extends it. If two or more cases were dismissed in the past year, it generally does not start at all.6
- Relief from the stay: a creditor can ask the court to lift the stay, and the court grants that for cause.6
What happens to the debt and the judgment afterward?
A stay is temporary. What lasts is the discharge. It releases you from personal liability for the debts it covers and acts as a court order that bars creditors from trying to collect those debts from you personally.7 3
A discharge also voids a court judgment to the extent that the judgment makes you personally liable for a discharged debt.3
A judgment can leave something else behind: a judicial lien, which is a lien obtained by a judgment, levy or other legal process. A valid lien that was not removed in the case stays in place afterward. You may ask the bankruptcy court to remove a judicial lien to the extent that it impairs an exemption you would otherwise be entitled to. That does not apply to a lien that secures a domestic support debt.8 9 7
Some debts behind a garnishment are generally not wiped out at all, such as alimony and child support, certain taxes and most government-backed education loans. For those debts, stopping the garnishment and ending the debt are separate questions.2
How is student loan garnishment different?
Federal law lets the Department of Education or a guaranty agency garnish the pay of a borrower who is not making required payments on a federal student loan, regardless of state law and without a court order. The same law sets limits.5
- The amount deducted may not exceed 15 percent of disposable pay unless the borrower agrees in writing to more.5
- The borrower must be sent written notice at least 30 days before garnishment proceedings begin.5
- The borrower must be given a chance to inspect the records, to agree a repayment schedule, and to have a hearing. The hearing is held before the garnishment order issues if the borrower asks for it on or before the 15th day after the notice was mailed.5
Filing bankruptcy brings the automatic stay, but stopping a garnishment is not the same as discharging the loan. Student loans are generally not discharged unless you prove undue hardship in a separate adversary proceeding.1 10 11
For the current state of federal student loan collection, check StudentAid.gov.
Which chapters stop garnishment, and what does filing cost?
The FTC says both Chapter 7 and Chapter 13 may stop garnishments and debt collection activities.12
Court fees are $338 for Chapter 7 and $313 for Chapter 13 (effective December 1, 2023). The court may waive Chapter 7 fees if your income is below 150% of the poverty level and you cannot pay even in installments.13 14 15 2
Before filing as an individual, you must get credit counseling from an approved agency within the 180 days before filing.2 16
Common questions
How fast does bankruptcy stop a garnishment?
The automatic stay arises when the petition is filed and needs no action by a judge. The bankruptcy clerk sends notice of the case to the creditors you list.2
Can I be fired because my wages are garnished?
Federal law bars employers from firing a worker because the worker's wages are garnished for any one debt.4
Does bankruptcy stop child support garnishment?
No. Garnishment for domestic support obligations such as child support is an exception to the automatic stay, and alimony and child support are generally not wiped out.1 2
Does a discharge remove a judgment lien?
Not by itself. A valid lien that was not removed in the case stays in place. You may ask the court to remove a judicial lien to the extent that it impairs an exemption.7 8 9
Can a federal student loan be collected from my pay without a lawsuit?
Yes, when the borrower is not making required payments. The law allows garnishment of up to 15 percent of disposable pay without a court order, after written notice sent at least 30 days in advance.5
Sources
Official courts & government references- Glossary of Legal Terms (uscourts.gov)
- Chapter 7 - Bankruptcy Basics (uscourts.gov)
- 11 U.S. Code § 524(a)(2) (Cornell LII)
- U.S. DOL, Wage and Hour Division: Fact Sheet #30, Federal Wage Garnishment Law (CCPA Title III)
- 20 U.S. Code § 1095a (Cornell LII)
- 11 U.S. Code § 362(b)(1), (b)(2) (Cornell LII)
- Discharge in Bankruptcy - Bankruptcy Basics
- 11 U.S. Code § 101(36) (Cornell LII)
- 11 U.S. Code § 522(f)(1)(A) (Cornell LII)
- 11 U.S. Code § 523(a)(8) (Cornell LII)
- DOJ: Student Loan Discharge Guidance: Fact Sheet (Nov. 17, 2022)
- FTC Consumer Advice: How To Get Out of Debt
- 28 U.S. Code § 1930 (Cornell LII)
- Bankruptcy Court Miscellaneous Fee Schedule (uscourts.gov)
- Chapter 13 - Bankruptcy Basics
- 11 U.S. Code § 109(h)(1) (Cornell LII)