How to Stop Wage Garnishment in Memphis, Tennessee

Filing bankruptcy immediately stops wage garnishment in Memphis through an automatic stay issued by the bankruptcy court. Once a bankruptcy case is filed in the Western District of Tennessee, creditors must stop garnishing wages, bank accounts, and other collection actions.

What Is Wage Garnishment?

Wage garnishment occurs when a creditor obtains a court order requiring your employer to withhold a portion of your paycheck to pay a debt. In Tennessee, garnishment is commonly used for:

• Credit card judgments
• Medical debt
• Personal loans

How Much Can Be Garnished in Tennessee?

Under Tennessee law, most creditors may garnish:

• Up to 25% of disposable earnings, or
• The amount by which weekly earnings exceed 30 times the federal minimum wage, whichever is less

Certain debts, such as child support, may allow higher garnishment amounts.

How Bankruptcy Stops Wage Garnishment in Memphis

When you file bankruptcy:

• The court issues an automatic stay
• Creditors must immediately stop garnishment
• Employers must cease wage deductions

This protection applies to both Chapter 7 and Chapter 13 bankruptcy cases.

Chapter 7 vs Chapter 13 for Wage Garnishment

Chapter 7 Bankruptcy

• Stops garnishment immediately
• Eliminates unsecured debt
• Case typically completed in 3–4 months

Chapter 13 Bankruptcy

• Stops garnishment immediately
• Creates a 3–5 year repayment plan
• Useful for tax or mortgage-related debts

Can Bankruptcy Stop Bank Account Garnishment?

Yes. Filing bankruptcy also stops:

• Bank levies
• Account freezes
• Pending collection actions

Funds taken before filing may not always be recoverable, making timing important.

Will Garnishment Resume After Bankruptcy?

• In Chapter 7, garnishment typically ends permanently for discharged debts
• In Chapter 13, garnishment remains stopped as long as the repayment plan is active

Are There Other Ways to Stop Wage Garnishment?

Other options may include:

• Filing a claim of exemption
• Negotiating a settlement
• Challenging the judgment

However, bankruptcy provides the fastest and most comprehensive protection.

Memphis Bankruptcy Court Information

Wage garnishment cases are stopped when a bankruptcy filing is made with the:

United States Bankruptcy Court
Western District of Tennessee
Serving Shelby County

Do I Need a Lawyer to Stop Wage Garnishment?

Because garnishment involves court orders and strict deadlines, many Memphis residents choose to work with a bankruptcy attorney to ensure garnishment stops quickly and legally.

Written by:

Tennessee bankruptcy attorney representing Memphis and Shelby County.

^*For those who qualify under federal law.