Legal Question in Credit and Debt Law in California

A private creditor, such as a bank, credit union, and finance company, can only garnish wages if it has a judgment. To get a judgment it has to sue you and obtain the judgment from the court by winning the case or getting it by default if you do not contest the lawsuit by filing an answer and appearing in court to present your side of the case. Therefore, if no judgment then no garnishment and they are just making false threats. If they have a judgment then you can wait until you are notified of the garnishment and consult with a lawyer to see if you should proceed with the bankruptcy. Filing a bankruptcy case should not affect your chances of getting a permanent modification although it might delay it and will require court approval of the modification agreement if you are offered a permanent modification.