Legal Question in Bankruptcy in New York

Re: judgments

A creditor with a judgment can both garnish the judgment debtor's wages and levy a writ of execution against the judgment debtor's bank account (or just restrain the account pursuant to a restraining notice).

Please see the prior posting on our Blog (newyorkbankruptcylaywerblog.com) on the topic of dealing with a default judgment. The posts are:

Help A Collector Has Frozen My Bank Account in New York, Queens, Bronx, Brooklyn! http://www.newyorkbankruptcylawyerblog.com/2008/10/help_a_collector_has_frozen_my.html

- and -

What Can I Do If a Default Judgment Has Been Entered Against Me in New York? http://www.newyorkbankruptcylawyerblog.com/2008/10/what_can_i_do_if_a_default_jud_1.html

The foregoing is intended as general information of interest to readers of this website and is not intended as legal advice for your situation. You should consult with an attorney.

Best regards,

Re: judgments

There are two ways you can stop the garnishment. You can contact the creditor and work out a voluntary payment arrangement.

You an also eliminate the judgment entirely by filing for bankruptcy. If you go the bankruptcy route, the "automatic bankruptcy stay" will have the effect of immediately stopping any collection efforts by the creditor as soon as you file. Thus, the garnishment would come to a complete stop as soon as your petition is filed with the court.

There are many factors to consider in deciding whether bankruptcy is the right course of action for you.

There is a substantial amount of bankruptcy information on the web site, http://www.bankruptcycanhelp.com

Your best bet is to consult with an experienced bankruptcy attorney who can help you decide what is best. Good luck!