If you’re dealing with wage garnishment in Massachusetts, you probably feel like your paycheck disappears before you even see it. Bankruptcy may offer relief. It can stop most types of wage garnishment, giving you a chance to reset your finances.
How the automatic stay protects your income
When you file for bankruptcy, a court order called the “automatic stay” kicks in right away. This stops most collection actions, including wage garnishment. If creditors take your wages for credit card debt, personal loans, or medical bills, the garnishment usually ends as soon as you file your case.
This pause gives you breathing room. Your employer stops taking money out of your paycheck, and creditors lose the ability to keep collecting. The automatic stay applies in both Chapter 7 and Chapter 13 bankruptcy cases.
What types of debt are affected
Most unsecured debts like credit cards and medical bills qualify for discharge through bankruptcy. Once the case ends, those debts go away, and garnishment for them doesn’t resume. In Chapter 13, you follow a payment plan, and garnishment usually ends after the court approves it.
Some debts don’t go away in bankruptcy. If a court ordered wage garnishment for child support, alimony, or recent taxes, bankruptcy won’t stop it. The automatic stay doesn’t cover those cases.
Massachusetts wage garnishment limits
In Massachusetts, creditors must get a court order before garnishing your wages. The law limits how much they can take—usually no more than 15% of your gross wages. Bankruptcy puts a full stop to that if the debt qualifies for discharge. It gives you one of the few ways to stop garnishment fast.
How bankruptcy can help you recover
Ending wage garnishment means you keep more of your paycheck. Bankruptcy gives you a clean slate and reduces the pressure from collection efforts. If creditors take part of your paycheck every week, filing for bankruptcy helps you take back control.