I wish my clients would ask me this one. Most of them assume that filing bk will simply stop the garnishment, and although it technically should, there are more hoops that we need to jump through.
Moments after I file bankruptcy, I need to send a letter to your payroll office and to the creditor processing the garnishment. The letter is aptly titled “stop garnishment letter.” I send the letter to the creditor, and in a week or so, he will get around to sending a notice to your employer that he is releasing the garnishment (“release of garnishment”). I also need to notify your payroll, or human resources (“HR”), or whoever processes payroll at your office. I notify them right away so that I can stop the garnishment that day.
What I’d like to have is:
1. email address for payroll
2. phone number for payroll
3. fax number for payroll
It may seem like overkill, but it’s important that we notify payroll so that your paycheck isn’t 25% smaller than it should be.
Sometimes, your payroll office will still process the garnishment in spite of my letter. They are more afraid of the creditor suing them for treble 3x the garnishment amount if they fail to process it. If payroll does this, we can send a letter to the creditor, and the creditor will usually write a refund check quickly.