The simple answer: It’s almost always better to speak with a bankruptcy attorney before the lawsuit or garnishment hits. But every situation is different, and understanding how bankruptcy interacts with lawsuits and garnishments can help you make the right decision.
How Lawsuits and Garnishments Work in Missouri
When a creditor believes you owe them money and you’re behind on payments, they may file a lawsuit. If they win, they can obtain a judgment and then:
- Garnish your wages
- Garnish your bank account
- Place a lien on your property
- Move to seize non-exempt assets
Missouri allows wage garnishments of up to 25% of your disposable income, which can be financially devastating.
How Bankruptcy Stops Lawsuits & Garnishments
Whether you file Chapter 7 or Chapter 13, bankruptcy immediately triggers the automatic stay — a powerful federal protection that:
- Stops lawsuits instantly
- Stops wage garnishments
- Stops bank account levies
- Stops collection calls
- Stops judgments from being enforced
In many cases, the automatic stay will hit faster than the creditor can garnish your paycheck.
You may prevent the judgment entirely
Once a creditor gets a judgment, it appears on your record and may lead to liens on property. Filing beforehand can prevent this.
You can keep more of your money
If you file before garnishment starts, you avoid losing a percentage of each paycheck.
Avoid bank account freezes
Creditors can freeze your account. Filing early stops this.
It’s easier to deal with debt before legal action begins
You have more options, less pressure, and fewer consequences when acting early.
Stop the garnishment going forward
As soon as you file, your employer must stop taking money out of your check.
Possibly recover garnished wages
In some cases, if more than $600 was garnished in the 90 days before filing, we may be able to recover that money for you.
Eliminate judgments
Most civil judgments for credit cards, medical bills, or personal loans can be discharged in bankruptcy.
However, bankruptcy cannot remove certain judgments, such as:
- Child support or alimony
- Certain taxes
- Fraud-related judgments
- Student loans (except in rare hardship cases)
What If You Wait Too Long?
Waiting to file can create consequences such as:
- Permanent judgment liens on your home
- Bank accounts drained
- Up to 25% of your paycheck lost
- Loss of financial control
- Fewer bankruptcy options
It’s almost always easier and cheaper to address the problem before the legal process moves too far.
Chapter 7 vs. Chapter 13: Which Stops Garnishments Better?
Chapter 7 Bankruptcy
- Fast (3–4 months)
- Eliminates most unsecured debts
- Stops garnishments immediately
- Can sometimes recover recent garnished wages
Chapter 13 Bankruptcy
- Creates a repayment plan
- Stops garnishments instantly
- Helps save homes and cars
- Ideal for people with higher income or non-exempt assets
Your Castle Law attorney will determine which chapter protects you best.
If you’re facing a lawsuit, judgment, or wage garnishment, Castle Law Office can help. We’ve guided thousands of families through bankruptcy, lawsuits, and garnishments — and we can help you get the fresh start you deserve.
📞 Call us at (816) 842-6200 or
📅 Schedule your free consultation online.
