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I filed a chapter 7 and included a personal loan. The payments were taken directly out of my pay. The bankruptcy was filed in

Columbia, SC |

December but they continued taking out the payments until a few days ago. They stated that since they weren't notified until late April they won't return the money they received from January to May . My lawyer is on vacation so I can't ask him at this moment.

Attorney Answers 4


You should double check with your lawyer, and what he says will trump what I say, but if you were a client of mine I think it would be highly likely you will get that money back..... I'm sure he'll be able to help you when he returns from vacation.

I am an attorney licensed to practice law in Ohio and some Federal Courts throughout the United States. I am not answering your question to solicit you as a client and there is a good chance that I am not licensed to practice law in the state that you reside. I hope that you find my assistance beneficial and, at most, use my advise as a finger pointing in the right direction. An attorney client relationship is not established by posting back and forth online. One of the most beneficial aspects of working with an attorney is the attorney client privilege which does not exist when you post personal facts online to faceless strangers. Hire an attorney if you want specific legal advise. If you cannot afford one, call your local bar association or search "(your city) legal aid" online. The fact that you took the time to post your question online likely means that you could use the aid of an attorney. Call around your area and see if any local attorneys offer free consultations.

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You did not ask us a question either. Your lawyer is the person to handle it so ask him when he gets back from vacation. He will know what to do. Obviously, he should have been alerted the very next paycheck after the filing, and the creditor should have received notice.

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Your attorney should be able to get back the money that was takend from the date the petition was filed.

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There are SC bankruptcy cases on point on this issue. Their continued deductions from your pay are a violation of the automatic stay under 11 U.S.C. 362(a). At a minimum, they will have to return the funds taken from you after the bankruptcy was filed. If the bankruptcy trustee chooses to do so, he may decide to get back payments made to them within 90 days prior to your filing the bankruptcy as a preference to this particular creditor. Make sure those payments made to them within 90 days prior to filing are listed on your Statement of Financial Affairs, unless they don't exceed a total of $600. If the creditor continued to take payments after having been notified of the bankruptcy, they may also be liable for punitive damages. Check with your bankruptcy attorney about this matter first.

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