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Garnishment and Bankruptcy Personal Bankruptcy

Discussion in 'Bankruptcy Law' started by neneof8, Mar 14, 2013.

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  1. neneof8

    neneof8 Law Topic Starter New Member

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    I currently have a garnishment in place. My payday is tomorrow. My bankruptcy will also be filed tomorrow. Is my employer still obligated to withhold the garnishment from my paycheck? Or will it cease do to the filing of the bankruptcy
     
    Ricardo Blancarte likes this.
  2. army judge

    army judge Super Moderator

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    You file today, everything gets stopped.

    Have your lawyer file today,if possible.

    Otherwise, it'll stop immediately upon filing.


    If your lawyer contacts your employer, most likely they can stop it on his say so.


    Sent from my iPad3 using Tapatalk HD
     
  3. Betty3

    Betty3 Super Moderator

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    What is your wage garnishment for? The automatic stay does not apply to domestic support obligations such as child support or alimony. These are considered priority debts that are unaffected by the automatic stay and cannot be discharged by filing bankruptcy. So if your wages are being garnished to satisfy domestic support obligations, the garnishment will not stop if you file bankruptcy.
     
  4. Proserpina

    Proserpina Moderator

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    OP, you may find that you can actually retrieve the garnished monies up to and including 90 days BEFORE the filing (and as long as the total amount is over $600).

    It's called "preferential transfer" and it's commonly done.

    I do suggest that if this is a simple Ch 7 and you're doing it pro se, to spend $30 on NOLO's excellent book on Ch 7 bankruptcy.
     
  5. Proserpina

    Proserpina Moderator

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    (Betty's post notwithstanding :) )
     
  6. Betty3

    Betty3 Super Moderator

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    Just to clarify, if a SINGLE CREDITOR has garnished in excess of $600.00 within the 90 days before the bankruptcy was filed, the creditor can be required to return the garnished money to the consumer. (except for support garnishments)
     

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