Can Bankruptcy Stop a Wage Garnishment in Ohio?

Wage garnishments are extremely stressful for workers in Pickerington, Lancaster, and throughout Fairfield County. Once a creditor obtains a judgment in Ohio, they can legally garnish up to 25% of your disposable income, reducing your paycheck every pay period. This often pushes families into a financial crisis.

The good news is that filing bankruptcy in central Ohio triggers a powerful legal protection called the automatic stay. This federal court order immediately stops most collection actions, including wage garnishments, lawsuits, bank levies, and collection calls. Once your employer is notified of the bankruptcy filing, the garnishment must stop—often within days.

Many clients are shocked to learn that wages taken shortly before filing bankruptcy may sometimes be recoverable. If funds were garnished within a certain time period before filing, your bankruptcy attorney may be able to request that those funds be returned to you. This can provide immediate financial relief after your case begins.

Both Chapter 7 and Chapter 13 bankruptcy stop garnishments. Chapter 7 often eliminates the underlying debt entirely, while Chapter 13 allows you to repay some or all of the debt over a manageable three- to five-year plan while protected from further garnishment.

Common garnishment debts in Pickerington and Lancaster include credit cards, medical bills, payday loans, personal loans, and deficiency balances from repossessions. Once wages are being taken, waiting rarely improves the situation—creditors often file additional lawsuits.

If you are falling behind on rent, utilities, or groceries because of a garnishment, bankruptcy may be the fastest and most effective way to regain control of your income. Every paycheck matters, and bankruptcy law is designed to give working families relief when they need it most.

For more information, call the Law Office of David A. Bhaerman at 614-834-7110 or schedule a Free Consultation Online.