Can Chapter 7 Bankruptcy Halt Wage Garnishment in Maryland?

 Posted on September 20, 2025 in Chapter 7 Bankruptcy

MD bankruptcy lawyerIn Maryland, wages can be garnished due to unpaid child support, past-due taxes, or defaulted student loans. While your wages could also be garnished for credit card debt, medical debt, or personal loans, the creditor must first obtain a court-ordered judgment, so this is not as common.

The state of Maryland limits the amount that can be garnished to the lesser of 25 percent of your disposable wages or the amount exceeding 30 times the federal minimum wage. While that may not sound like much, in today’s economy, any amount taken from your check can make your financial situation even more precarious.

If you are thinking about filing for Chapter 7 bankruptcy, you may wonder whether wage garnishment will continue. Whatever your situation, filing for bankruptcy halts most wage garnishments through the automatic stay, allowing you to receive at least temporary relief.

Although the automatic stay legally requires creditors to cease most collection activities – including wage garnishment – you may still need to notify your employer’s payroll department. An experienced Prince George’s County, MD Chapter 7 bankruptcy attorney can help you determine whether your wage garnishment will halt when you file for bankruptcy.

Will All Wage Garnishments Stop When I File for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy will not stop all wage garnishments. If your paycheck is being garnished for unpaid child support or alimony, filing for bankruptcy probably will not stop those garnishments. These are considered nondischargeable debts under bankruptcy laws, so you would likely continue to have your paycheck garnished for those debts.

The good news is that following your bankruptcy, you will be left with more disposable income to pay those debts. Some student loan wage garnishments may be stopped when you file Chapter 7 bankruptcy, but most would remain in place unless you can have your student loans discharged through bankruptcy, which is a challenging process.

If your wages are being garnished for tax debts from years ago, then the wage garnishment would likely stop once Chapter 7 is filed, because these are potentially dischargeable debts. If, however, your wages are being garnished for recent tax debts owed to the IRS or state tax authorities, the wage garnishment would likely remain in place.

Wage garnishments that will stop are those related to dischargeable debts, including credit card debt, medical bills, and personal loans. Not only will wage garnishment stop for dischargeable debts, but the debt will be permanently eliminated through Chapter 7.

How Long Does the Automatic Stay Remain in Effect for Chapter 7 Bankruptcy Filers?

If you are a first-time filer, the automatic stay will remain in effect until the case is completed, dismissed, or the debt is discharged. If you have had a bankruptcy case dismissed within the previous year, the automatic stay for wage garnishment related to non-dischargeable debts may only last for 30 days or may not go into effect at all.

How Quickly is Wage Garnishment Stopped Once Chapter 7 Bankruptcy is Filed?

The automatic stay that takes effect as soon as a Chapter 7 bankruptcy is filed legally halts most wage garnishments, other than those for child support, alimony, and possibly those for recent tax debts and student loans. The bankruptcy court will notify your creditors, but because this can take several days or even weeks, you should have your attorney send a copy of the bankruptcy filing to the payroll department at your workplace, the creditor, and the entity that issued the wage garnishment order.

Can I Recover Garnished Wages After My Chapter 7 Bankruptcy Case is Completed?

Under certain circumstances, you may be able to recover wages that were garnished shortly before you filed for bankruptcy. This may apply if your wages were garnished within 90 days before you filed for bankruptcy, the amount totaled $600 or more, and the wages that were garnished would otherwise be exempt income under Chapter 7 bankruptcy laws.  

Contact a Washington D.C. Chapter 7 Bankruptcy Lawyer

If you are struggling with debt and wage garnishments, it can be extremely beneficial to speak to an experienced Prince George’s County, MD consumer bankruptcy attorney from Bloc One Services, LLC. Attorney Blocton provides the local community with quality legal services at a fair and reasonable price. "Rebuild Your Future with Hope." Call 240-200-0076 for a free, initial 30-minute consultation.

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