The most important thing for anyone with debt on its way into collections is to talk with your debt collectors. If you can negotiate an affordable payment schedule, do it. While the common perception is that debt collectors are out to “get you,” they’re actually just trying to collect what you previously borrowed. Working out a solution with them will save you time and money in the long run. However, this may not always be possible due to a true inability to pay the debt collectors and Bankruptcy is the only solution.

 

Filing for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy is one way to stop wage garnishments. Both of these are different kinds of bankruptcy. Unlike Chapter 13, Chapter 7 is designed to completely “wipe out” or eliminate your debt. Chapter 13 on the other hand, does not eliminate 100 percent of your debt. It’s considered to be a “reorganization” of your debt. This type of bankruptcy is often utilized when someone wants to stop a home foreclosure or repossession of a vehicle, but it will also put a halt to all wage garnishments.