Garnishment and Bankruptcy: Your Fresh Start
If you are getting garnished now--or about to--you probably need a fresh start.
If you can't keep struggling with honest debts you just can't pay--that's why bankruptcy is in the law.
Some people think bankruptcy is some kind of punishment for not paying your debts. But actually, the purpose of bankruptcy is to help you.
Back in 1934, the Supreme Court said:
One of the primary purposes of the Bankruptcy Act is to relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start afresh….
This purpose of the act has been again and again emphasized … as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . . a new opportunity in life and a clear field for future effort…
I have thirty years experience as a bankruptcy lawyer. I amaze people every day when I tell them all the ways bankruptcy gives them a fresh start.
"This purpose of the act has been again and again emphasized … as being of public, as well as private, interest, in that it gives to the honest but unfortunate debtor . . . . a new opportunity in life and a clear field for future effort…" The Supreme Court, 1934.
1. The creditors can’t garnish you
When you file bankruptcy, your bankruptcy fresh start blocks any court process to collect from you. Creditors can’t sue you, can’t garnish you, can’t take you to court in any way. And they can’t continue court process either. So an on-going garnishment is stopped.
2. They can’t call you or bill you
You probably don’t remember the Bankruptcy Act of 1898. Under the Bankruptcy Act of 1898, your creditors couldn’t garnish you, but they could still pester you to pay. That changed in 1978.
3. Your credit score go up
If you have a garnishment on you, your credit is about as bad as you can make it. That's why the Federal Reserve says “The individuals who go bankrupt experience a sharp boost in their credit score after bankruptcy.”
4. You’ll sleep better
You've been lying awake since you got notice of that garnishment. So you are not surprised. When we asked people in 2019, an amazing 94% said they slept better after filing bankruptcy.
5. You’ll be smarter
Scientific research shows when you are stressed for money you can't think straight about much of anything. You'll be amazed how much better you handle everything in your life, when you get a fresh start.
Find Out More
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