When a creditor obtains a judgment against you in court, the next step is to collect on that judgment. Judgment creditors in Kansas can garnish bank accounts, garnish wages, and even seize property. A judgment creditor can request a court order directing your employer will to withhold 25% of your disposable earnings or all disposable earnings over $217.50 per week, whichever amount is less. The wage garnishment will continue until the judgment amount, including interest, is paid in full.
Wage garnishments stop as soon as a bankruptcy case is filed. Upon the filing of a Bankruptcy Petition, a rule called the automatic stay immediately goes into effect. This rule prohibits creditors from taking any action to collect on a debt, including garnishment. It may take time for the creditor’s attorney to be notified of the bankruptcy and to request a garnishment release from the Court; however, any garnishment of funds earned after the bankruptcy is filed must be returned to the employee.
Filing a bankruptcy will stop the garnishment, but it will not get back the money garnished prior to the filing of the case. If a lawsuit has been filed against you, talk with a bankruptcy attorney before the garnishment takes effect.