If you’re facing wage garnishment or a bank account levy in Winter Park, Orlando, Kissimmee, or other areas within the Middle District of Florida, you might feel like your financial situation is spiraling out of control. The good news is that bankruptcy can often stop garnishments and levies, but the process isn’t always straightforward. Understanding how bankruptcy laws work in these situations is critical, and working with an Orlando bankruptcy attorney can be essential to protecting your rights.
How Wage & Bank Garnishments Work in Florida
Wage garnishments are governed by Section 77.0305 of Chapter 77 of the Florida Statutes. When a creditor secures a judgment against you, they can take legal action to collect the debt. Wage garnishment involves court-ordered deductions from your paycheck, while a bank account levy allows a creditor to seize funds directly from your accounts.
In Florida, the wage garnishment process begins when a creditor secures a judgment against you. This typically starts with the creditor filing a debt collection lawsuit and serving you with legal papers. If you fail to respond to the lawsuit by the deadline, the court may issue a default judgment in favor of the creditor for the amount owed.
Once the judgment is granted, the creditor can request a Motion for a Continuing Wage Garnishment order. This motion is filed ex parte, meaning you won’t be notified of the request. If approved, the court issues a Continuing Writ of Garnishment, which is then served on your employer. Your employer is required to comply with the garnishment order, but has 20 days to respond to the writ. This response must be served on the creditor.
Often, the first indication you’ll have of a garnishment is when you notice a deduction on your paycheck. These orders can direct your employer to withhold up to 25% of your wages and forward it to the creditor.
As the debtor, you have the right to object to the garnishment by filing a motion or a claim of exemption with the court. If you don’t act—or if the court denies your objection or exemption—the court will issue a Final Judgment of Garnishment. This final judgment obligates your employer to continue withholding wages until the debt is fully paid.
(Certain debts, such as income taxes, student loans, or child support, follow different rules. These can lead to garnishment without the need for a court order. However, filing for bankruptcy can often stop wage garnishment for most types of debt, including these, and allow you to address them through the bankruptcy process instead of ongoing garnishment.)
Here in Orange County and throughout the State of Florida, wage garnishment involves deducting money directly from your paycheck, while a levy allows a creditor to seize funds in your bank account.
Florida law does have protections, such as the “head of household” exemption for wage garnishment and restrictions on levies against accounts containing protected funds like Social Security, but these exemptions don’t automatically apply—you must act to claim them. You’ll need to assert your rights proactively.
To navigate these protections effectively, people considering this route might consider consulting with Orlando bankruptcy attorneys, or other qualified lawyers who practice in the State of Florida, who can guide you in claiming exemptions like the “head of household” protection for wage garnishment or safeguarding protected funds such as Social Security. They can help you assert your rights proactively under Florida law and ensure no missteps jeopardize your financial security.
Can Filing Bankruptcy Stop Wage or Account Garnishments?
Yes, filing bankruptcy can stop both wage garnishments and bank levies under most circumstances, thanks to the automatic stay. This is a powerful protection that halts most collection actions as soon as your bankruptcy case is filed. Here’s how it works:
- Automatic Stay Activation
Once your bankruptcy petition is filed, the automatic stay goes into effect. This court order stops creditors from pursuing collection activities, including garnishments and levies. For individuals in the Middle District of Florida, this protection can be a lifeline. - Wage Garnishments
If your wages are being garnished, the automatic stay typically forces your employer to stop withholding money immediately. However, the timing can vary based on when your employer processes the court order. - Bank Account Levies
A levy on your bank account is also generally halted by the automatic stay. If the funds have not yet been turned over to the creditor, bankruptcy can prevent the levy from being completed. Timing is critical here—acting quickly after a levy is crucial.
Limitations & Exceptions to the Automatic Stay
While the automatic stay is broad, there are exceptions you should know about:
- Domestic Support Obligations
Bankruptcy won’t stop garnishments related to child support or alimony. - Recent Garnishments
If wages or funds were garnished or levied before you filed, recovering those funds can be challenging, although it may be possible in some cases. - Multiple Bankruptcy Filings
If you’ve filed for bankruptcy multiple times recently, the automatic stay might be limited or not apply at all.
Types of Bankruptcy: Chapter 7 vs. Chapter 13
The type of bankruptcy you file will determine how your garnishment or levy is resolved long-term:
- Chapter 7 Bankruptcy
This liquidation bankruptcy can discharge most unsecured debts, such as credit card balances and medical bills. Once these debts are wiped out, creditors lose the legal right to garnish your wages or levy your accounts for those debts. However, Chapter 7 may not help with secured debts or certain priority debts. - Chapter 13 Bankruptcy
Chapter 13 involves a repayment plan, allowing you to catch up on debts like mortgage arrears or tax obligations. Garnishments and levies tied to these debts are typically addressed through the repayment plan. For some individuals, this reorganization offers a more manageable way to regain financial control.
Why Timing is Important in Bankruptcy Cases
Timing can make or break the effectiveness of bankruptcy in stopping a garnishment or levy. Filing your case before the garnishment or levy proceeds further can protect your funds or wages. If you’re in Winter Park, Orlando, or nearby areas, consulting with a bankruptcy attorney familiar with the Middle District of Florida is vital to ensure your filing is done correctly and on time.
Protecting Exempt Property
The Sunshine State has generous exemptions that protect certain assets (like homes and vehicles) in bankruptcy, such as the homestead exemption, personal property exemptions, and protections for retirement accounts.
If you’re the head of household or your income is below a certain threshold in Florida, you may also qualify for exemptions that can prevent wage garnishment entirely, even outside bankruptcy. A local attorney can help ensure these protections are properly applied in your case.
Stopping Wage Garnishments (& Bank Account Garnishments) by Filing Bankruptcy
Dealing with wage garnishments or a frozen bank account is incredibly stressful, but bankruptcy can often bring those actions to a stop right away. The moment a Chapter 7 or Chapter 13 case is filed, something called the automatic stay goes into effect. This is a powerful protection that legally prevents creditors from continuing to take money from your paycheck or pulling funds from your bank account without approval from the bankruptcy court.
For many types of debt, like credit card balances or medical bills, bankruptcy can do more than just stop the garnishment—it can eliminate the debt entirely. Chapter 7 allows you to wipe out qualifying debts without further payment, while Chapter 13 lets you reduce what you owe and repay it over time on terms you can handle.
Even if the debt tied to the garnishment isn’t one that can be discharged, like past-due child support or income taxes (including unpaid FL state taxes), bankruptcy still helps. A Chapter 13 repayment plan can stop the garnishment and give you up to 5 years to catch up, all while protecting you from further collection efforts.
Besides stopping the immediate crisis, working with a bankruptcy lawyer can help you set up a clear, manageable path forward.
Work With an Orlando Bankruptcy Attorney
Bankruptcy is a powerful tool—but unfortunately, it’s not a simple one. Filing in Florida’s Middle District, which serves residents across the Greater Orlando area, involves specific procedures and local rules. Stopping garnishments or levies through bankruptcy is a complex legal process that requires careful attention to detail. Orlando bankruptcy attorneys can help you navigate these complexities, ensuring you take full advantage of the protections bankruptcy offers.
Don’t wait until the situation becomes more stressful—taking proactive steps now can make all the difference. The State of Florida has specific rules and procedures for bankruptcy cases, and a misstep could jeopardize your protections. Consult with an attorney experienced in handling bankruptcy cases in this region to guide you through the process to make sure you understand all your rights and options.
The Independence Law Firm (Winter Park)
If you’re struggling with wage garnishments and mounting debt, speaking with knowledgeable Florida bankruptcy attorneys could be the first step toward relief. Bankruptcy not only stops garnishments but can also address the root of the problem—your overall debt. Instead of paying off one creditor through garnished wages, a bankruptcy filing can often eliminate most or all of your unsecured debts, giving you a fresh start.
Reaching out for professional guidance is important. An experienced bankruptcy attorney in Orange County can explain your options and help you determine the best path forward. For personalized advice and a free bankruptcy consultation, call The Independence Law Firm at (813) 642-4863 or fill out the online contact form to get in touch. You can also click here to schedule an in-person or online (Zoom) consultation.
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