How Bankruptcy Affects Wage Garnishment in Florida

Wage garnishment can create a serious financial strain, especially when you’re already trying to juggle rent, groceries, and other household bills. In Florida, as in many states, a creditor must obtain a court order to take a portion of your paycheck to repay a debt. Commonly garnished obligations include unpaid credit card bills, medical debts, or past-due personal loans. Fortunately, federal bankruptcy laws often provide a powerful way to stop or reduce garnishment actions, letting you reclaim your income.

When you file for bankruptcy—whether under Chapter 7 or Chapter 13—an “automatic stay” typically halts most creditor collection efforts, including wage garnishments. This instant relief can mean the difference between falling behind on housing or utilities and staying current. However, it’s crucial to remember that some garnishments, such as those for child support or alimony, may still proceed under certain circumstances.

Whether you work in Miami’s bustling tourism industry, Jacksonville’s shipping sector, or Tampa’s financial arena, wage garnishment can blindside Floridians at any income level. Debt collectors often proceed with garnishment after repeated missed payments or if a default judgment is filed against you. Bankruptcy halts the process almost immediately, giving you room to plan and allocate money for essential expenses. In many cases, the garnishment cannot resume unless the bankruptcy court lifts the automatic stay or the case closes without a discharge.

Another element that plays a key role is Florida’s bankruptcy exemptions. The state offers some of the most robust asset protections in the nation—especially when it comes to homestead and certain personal property. Though Florida does not adhere to federal exemptions, many individuals can keep critical assets like their home, car, and retirement accounts. The ability to preserve these assets is vital when you’re trying to recover financially from garnished wages.

Chapter 7 bankruptcy, also known as “liquidation,” discharges most unsecured debts within a few months if you meet the income requirements. Once the garnishments cease, you can use the additional funds for essentials or to address secured obligations like a mortgage. By contrast, Chapter 13 bankruptcy consolidates and reorganizes debts into a 3- to 5-year repayment plan, allowing you to catch up on overdue balances at a manageable rate. This can be particularly helpful if you also face foreclosure or delinquent car payments.

One detail to note: Certain court-ordered garnishments—like child support, alimony, or criminal restitution—might not be fully stopped by bankruptcy. Always discuss the specifics with a qualified Florida bankruptcy attorney so they can determine how the automatic stay applies to your situation. Additionally, keep in mind that if you owe significant back child support, the wage garnishment for that obligation may continue even during bankruptcy.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized guidance, consult a licensed bankruptcy attorney in Florida.