How Bankruptcy May Stop Property Garnishment
When you’re facing the threat of losing property because of unpaid debts, it can be stressful and deeply personal. Property garnishment doesn’t just affect numbers on a page—it can put your home, vehicle, bank account, or other assets at risk. If you’re in this position, you’re not alone, and there are lawful ways to slow things down and regain a sense of control.
At William Ray Ford Attorney, I work with clients from Clinton, Maryland, as well as Camp Springs, Waldorf, Upper Marlboro, Calvert County, Prince George’s County, Anne Arundel County, Montgomery County, Howard County, Frederick County, and Queen Anne’s County who are facing aggressive collection actions.
Bankruptcy isn’t about giving up. It’s often about protecting what matters most while creating space to breathe and make informed decisions. If property garnishment is threatening your stability, reach out to my firm to talk through your options.
How Bankruptcy Can Put an Immediate Stop to Garnishment
One of the most powerful tools bankruptcy offers is the automatic stay. This is a legal order that goes into effect as soon as a bankruptcy case is filed. It requires most creditors to stop collection efforts right away.
Here’s how that can help you:
It stops ongoing property garnishment actions
It prevents new liens from being placed on your property
It halts bank account levies in many situations
It pauses foreclosure and repossession efforts
This pause isn’t just procedural—it can be a turning point. It gives you time to assess your financial situation without constant threats. Many clients tell me that this breathing room is the first sense of relief they’ve felt in months.
That said, the automatic stay has limits. Some creditors may ask the court for permission to continue certain actions, and not every type of debt is treated the same. That’s why timing and proper filing matter so much before garnishment goes too far.
Different Bankruptcy Chapters and Their Impact on Property
The type of bankruptcy you file plays a big role in how property garnishment is handled. The two most common options for individuals are Chapter 7 and Chapter 13, and each works differently.
Here are the key differences between common bankruptcy options:
Chapter 7 bankruptcy: Often used to wipe out unsecured debts and can stop garnishment quickly, though some non-exempt property may be sold
Chapter 13 bankruptcy: Sets up a repayment plan over three to five years and can help you keep property while catching up on certain debts
With Chapter 7, the goal is usually a fresh start. If your property falls within exemption limits, it may be protected from seizure. Chapter 13, on the other hand, focuses on restructuring debt so you can keep assets like a home or car while making manageable payments.
Choosing between these options depends on your income, the type of property at risk, and your long-term goals. Filing the right chapter can make the difference between losing property and keeping it.
Property Exemptions and Why They're Vital
Exemptions are rules that protect certain types of property from being taken during bankruptcy. These protections are critical when property garnishment is already underway or looming.
Common types of property that may be protected:
A portion of equity in your home
One or more vehicles up to a set value
Household goods and personal items
Retirement accounts and certain benefits
These exemptions aren’t unlimited, and they vary based on state and federal rules. Still, they often allow people to keep the essentials needed for daily life. Many clients are surprised to learn that they don’t have to lose everything to get debt relief.
Careful planning before filing can make exemptions work in your favor. Once your case is filed correctly, these protections can block creditors from taking exempt property, even if they’ve already started garnishment actions.
What Happens If Garnishment Has Already Started
If a creditor has already seized property or frozen an account, you may still have options. Bankruptcy can sometimes reverse or limit the damage, depending on what’s already happened and when.
Possible outcomes when bankruptcy is filed after garnishment begins include:
Future garnishment actions are stopped
Recently taken funds may be recoverable in some cases
Creditors must follow court rules before taking further steps
Timing is essential here. The sooner action is taken, the more likely it is that bankruptcy can reduce the impact of garnishment. Waiting too long may limit what can be recovered, but even then, filing can prevent things from getting worse.
This is often where people feel stuck or discouraged. I remind clients that even if the situation feels far along, there may still be a path forward that protects remaining assets and stabilizes finances.
A Path Forward When Property Garnishment Threatens Your Stability
Facing property garnishment can make you feel powerless, but bankruptcy law was designed to give people a second chance, not to punish them for financial hardship. With the right approach, it may stop creditor actions, protect key assets, and give you time to rebuild without constant fear of loss.
At William Ray Ford Attorney, I help clients throughout Clinton, Camp Springs, Waldorf, Upper Marlboro, Calvert County, Prince George’s County, Anne Arundel, Montgomery County, Howard County, Frederick County, and Queen Anne’s County explore whether bankruptcy is the right step for their situation.
You deserve clear information and a strategy that respects your goals and your dignity. If property garnishment is putting your future at risk, reach out to me today to start the conversation.