topic Re: Filing bankruptcy and wages garnished in Bankruptcy

Filing bankruptcy and wages garnished

cartwrna — Fri, 27 Jul 2018 14:40:50 GMT

So I got an order in the mail for a $5,000 garnishment, coupled with many other judgements just waiting to garnish me I opted to file Chapter 7 bankruptcy. We are filing the petition and other paperwork on Sunday the 29th. My paycheck has already posted on my employers website and shows that $612 is allotted out for garnishment. Since these are wages payable on the 30th, and I’m filing my bankruptcy on the 29th, will these wages be returned to me? I did some searching and didn’t find a whole lot on this. Thank you for your quick replies, and look forward to hanging out in this section of the forums!

Re: Filing bankruptcy and wages garnished

cartwrna — Fri, 27 Jul 2018 14:41:44 GMT

If it helps the check has not been issued, but will be the 30th. I am a salary employee.

Re: Filing bankruptcy and wages garnished

Anonymous — Fri, 27 Jul 2018 16:14:20 GMT

I has this happen to me, you need to find out thru your company what documents they need to stop the garnishment. In my case all my wages garnished were returned once I provided that paperwork . Good Luck

Re: Filing bankruptcy and wages garnished

Anonymous — Fri, 27 Jul 2018 22:02:09 GMT

In order to file, you need to locate a clerk or judge willing to accept your documents on a weekend, an arrangement that usually requires a few days notice and a little clout.
However some of federal bankruptcy courts now accept electronic filings.
Good luck keeping your money.

Re: Filing bankruptcy and wages garnished

cartwrna — Fri, 27 Jul 2018 22:26:09 GMT

I have attained a lawyer as of Monday that will be having my appointment to fill out the paperwork with me on Sunday and electronically file. I can always ask him then but wanted to see what my fellow FICO members had to say.

Re: Filing bankruptcy and wages garnished

Anonymous — Fri, 27 Jul 2018 23:05:33 GMT

Just fyi my garnishment was already in effect for 2 weeks before i even filed and i still got all my money back.

Re: Filing bankruptcy and wages garnished

cartwrna — Sat, 28 Jul 2018 00:23:09 GMT

Between me and my wife we have a $2,000 wildcard that we would have to use to get funds back that we’re taken pre bankruptcy, but are instead going to use that for the one asset the trustee may attempt to sell. A 50cc quad of my sons that has a value of maybe $1100. I shouldn’t have any issues getting it back I wouldn’t think since the petition will be filed the 29th and that check is actually the 30th. Payroll just gets done sooner than the check date.

Re: Filing bankruptcy and wages garnished

cartwrna — Sat, 28 Jul 2018 00:24:21 GMT

I’m in Iowa, so we have some pretty good exemptions as far as bankruptcy. For instance our homestead amount is unlimited aside from size of property from what I have read and seen. Under a 1/2 acre in town and 40 acres or under rural.

Re: Filing bankruptcy and wages garnished

tricie17 — Sat, 28 Jul 2018 15:45:42 GMT

The automatic stay goes into affect immediately however the 30th maybe too soon to stop garnishment. If it is Government, it could be stopped and if private business maybe longer. You will eventually see it stopped at some point. Note: Given as informational only.

Re: Filing bankruptcy and wages garnished

Anonymous — Sat, 28 Jul 2018 16:12:01 GMT

Tomorrow after filing, I would download a copy of the notice of bankruptcy filing and email it to your company's HR department and the creditor garnishing your wages. Then if you had to, you could easily argue that both were made aware of the filing before a check could have gone out the door.

In the event a check was already mailed, I believe you should receive it back, perhaps after discharge. Your attorney can discuss other strategies such as scheduling your pay/cash, if it is required.

Re: Filing bankruptcy and wages garnished

Daare2dreeam — Wed, 08 Aug 2018 15:25:43 GMT

I have a similar situation except I haven't filed yet and over $5000 has been garnished from me since 12/2017. Also this judgement belongs to a relative but they came after my check. I have to find a lawyer. If I file will they return those funds or will I have to go to court to clear my name from the judgement in order to get what they have already taken?

Re: Filing bankruptcy and wages garnished

cartwrna — Thu, 09 Aug 2018 00:42:33 GMT

Not sure on your specific states laws governing bankruptcy but I’m in Iowa. Here we can use our “wildcard” which is equal to $1,000 to get back that much in garnished wages as long as within the last 3 months I believe and over $600. Unfortunately I had to use my wildcard for my kids ATV, and chose it over the wages. My lawyer is still trying a different route to get some of it back, but not sure if it will be successful. Either way, $600 is a small price to pay for writing off the amount of unsecured debt me and my wife were carrying.

Re: Filing bankruptcy and wages garnished

Daare2dreeam — Thu, 09 Aug 2018 14:35:23 GMT

Thank you for response. I have a consultation with a lawyer today. I will ask about rules and options specific to my state.

Garnishment after filing

cartwrna — Fri, 10 Aug 2018 22:46:33 GMT

So weird predicament..I was being garnished, so filed bankruptcy. They were able to get quite a chunk out of check 3 days prior then filing but was t a huge deal. Now we have filed on the 3rd, lawyers and other agencies have been notified by court filings. Look at my paycheck that is scheduled to deposit the 15th and sure enough they garnished 25% or it! The hard part to bite is that this check is what my mortgage comes out of so it will essentially leave me and my family with nothing for next 2 weeks, which is why I filed! How do I go about getting this back and how quick will I get it back?

Re: Garnishment after filing

DaveInAZ — Fri, 10 Aug 2018 23:39:39 GMT

Well, once they filed for garnishment your employer's payroll setup the automatic garnishment deductions. I'd start with talking to your employer's payroll department, telling them you filed BK so the garnishment is no longer valid, you'll need to provide documents showing that you filed. Then send copies of your BK filing to the creditor that made the garnishment and demand they cease & desist.

Re: Garnishment after filing

cartwrna — Sat, 11 Aug 2018 00:48:51 GMT

I attempted to call employers payroll, unfortunately their office was closed by that time so won’t be until Monday morning. I have made my lawyer aware, and assuming he will take care of most of it for me.

Re: Garnishment after filing

Anonymous — Sat, 11 Aug 2018 23:56:36 GMT

Your lawyer should do all the calling and faxing to your payroll for you. You will get that money back because you filing creates an automatic stay.

Re: Garnishment after filing

Daare2dreeam — Thu, 24 Jan 2019 17:09:13 GMT

Here's an update on my situation. I filed for ch 7 and wasjust discharged. Before discharge I only got back $100 and I was told by my employer that I would get another $100 that was held during the automatic stay once I provide proof of my discharge. I checked with my lawyer and he said I most likely wouldn't be able to recover any of the $5000 they took even though I recall him mentioning during our concsult that it is a possibility that sometimes they can go back at least 3 months and recover wages. I'm glad to be discharged but I don't feel like the lawyer provided much help. I am still having to fight with debt holders who havent cleared my balances etc and once they filed my paperwork the lawyer was pretty much done with me it seems. Definitely a learning experience. Never want to go through this again.