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Can a garnishment be taken out after bankruptcy has been filed?

Denver, CO |

I filed bankruptcy on April 18th and my weekly paycheck showed a garnishment still for April 25th check

Attorney Answers 4

  1. The garnishment, if from a pre-petition debt, must stop (google: automatic stay). If the garnishment was going on before the case was filed, then it's probably a pre-petition debt. In addition, if the creditor has garnished more than $600 from you in the 90 days before filing, you can get the money back. You should see an attorney to help make this determination.

  2. The garnishment will stop with a bankruptcy filing. Sometimes there might be issues with a post-filing garnishment if the payroll information was sent prior to the bankruptcy being filed or the employer notified. You should be able to recoup any post-filing garnished wages. Also, you should have listed any pre-filing garnished wages as an asset on Schedule B, using your wildcard exemption to protect. This will allow you to recover any pre-petition garnished wages.

  3. Garnishments don't stop by magic. You have to communicate with all the affected parties, and if a paycheck has already been processed with the garnishment at the time you filed bankruptcy, or if the employer and the creditor were not aware of the bankruptcy filing, this mistake is understandable. Hope this perspective helps!

  4. If you filed on the 18th then the garnishment should have stopped, but the creditor may not have received the notice before the April 25 payment came out of your check. You can have your bankruptcy attorney contact the creditor and they will refund the last garnishment.

    You can reach Harkess & Salter LLC at (303) 531-5380 or Stephen Harkess is an attorney licensed in the state and federal courts of Colorado. This answer is for general information only and does not create an attorney client relationship between Stephen Harkess or Harkess & Salter LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.

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