As a bonafide employer, do you fully comprehend the federal wage garnishment law, which governs all court orders requiring employers to deduct a specific amount from an employee's wages for purposes of satisfying a debt.

Declaring personal bankruptcy while running an S Corp is certainly possible, however, speak to your accountant or attorney before you make the decision to file bankruptcy if you own a business. Sometimes it happens that they pay high after bidding but the actual cost is less in the market.