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Filing bankruptcy and wages garnished

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Valued Contributor

Filing bankruptcy and wages garnished

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!
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 1 of 18
17 REPLIES 17
Valued Contributor

Re: Filing bankruptcy and wages garnished

If it helps the check has not been issued, but will be the 30th. I am a salary employee.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 2 of 18
Valued Member

Re: Filing bankruptcy and wages garnished

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

Discharge 06/15/2018
EQ-598
TU579
EXP-579

NOW : EQ- 671, TU 653, EXP 669
Message 3 of 18
New Contributor

Re: Filing bankruptcy and wages garnished

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.

Message 4 of 18
Valued Contributor

Re: Filing bankruptcy and wages garnished

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.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 5 of 18
Valued Member

Re: Filing bankruptcy and wages garnished

Just fyi my garnishment was already in effect for 2 weeks before i even filed and i still got all my money back.
Discharge 06/15/2018
EQ-598
TU579
EXP-579

NOW : EQ- 671, TU 653, EXP 669
Message 6 of 18
Valued Contributor

Re: Filing bankruptcy and wages garnished

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.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 7 of 18
Valued Contributor

Re: Filing bankruptcy and wages garnished

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.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 8 of 18
Regular Contributor

Re: Filing bankruptcy and wages garnished

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.

Message 9 of 18
Frequent Contributor

Re: Filing bankruptcy and wages garnished

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.

Message 10 of 18
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