How to Stop Wage Garnishment in Memphis with Bankruptcy

Can Bankruptcy Stop Wage Garnishment in Memphis?

If a creditor has started taking a portion of your paycheck, you are likely feeling the immediate financial strain. In Tennessee, creditors can legally garnish up to 25% of your disposable income for most debts. This can make it impossible to pay your rent, mortgage, or utilities.

The good news is that filing for bankruptcy in Memphis triggers a legal protection called the “Automatic Stay.” This federal law requires all creditors to stop garnishment actions immediately—often on the same day your case is filed.

How the Automatic Stay Works

As soon as Arthur Ray Law Offices files your bankruptcy petition with the United States Bankruptcy Court for the Western District of Tennessee, the court issues an automatic stay.

  • Immediate Protection: It legally bars creditors from continuing or starting any collection actions, including lawsuits, harassing phone calls, and wage garnishments.

  • Notice to Employers: We notify your employer and the creditor’s attorney that the stay is in effect. Under federal law, they must stop withholding money from your check.

Chapter 7 vs. Chapter 13 for Wage Garnishment

Both types of bankruptcy will stop a garnishment, but they work differently for your long-term debt:

  1. Chapter 7 Bankruptcy: This “straight bankruptcy” can completely wipe out the underlying debt that caused the garnishment (like credit card debt or medical bills) in just a few months.

  2. Chapter 13 Bankruptcy: This is a reorganization plan. In Memphis, many of our clients choose Chapter 13 because it allows you to stop the garnishment and pay back a portion of your debts over 3 to 5 years in an affordable monthly payment.

The Memphis Bankruptcy Process

Because we have over 40 years of experience serving Shelby County, we understand the local court filing process. Filing your case correctly in the Memphis court is the fastest way to protect your paycheck and get your life back on track.

Don’t wait until your next paycheck is short. If you are facing a garnishment in Memphis, Bartlett, Germantown, or Collierville, contact us today.

Schedule Your Free Consultation

Call Arthur Ray Law Offices today at (901) 475-8200 to discuss your options and stop your wage garnishment now.

Sincerely yours,

Ar Signature
Aurther Ray Rounded

Arthur Ray

Arthur Ray Law Offices

We are a debt relief agency. Our Bankruptcy Lawyers in Memphis, TN help people file for bankruptcy under the bankruptcy code.

*For those who qualify under federal law.