Filing bankruptcy stops all collections actions against you for unpaid debts that you owe, whether they involve court action or simply informal efforts to collect a debt. For instance, bankruptcy stops wage garnishments for unpaid debts, even if a court has ordered the garnishment. For this reason, bankruptcy can be an effective tool in reducing deductions from your income due to unpaid debts. Furthermore, if you successfully obtain a bankruptcy discharge of your debts, you will no longer be responsible for repaying those debts, and your creditors can no longer take any action against you to collect the discharged debts. Thus, there can be no further wage garnishments against your income for these unpaid debts, or any other type of collections action.