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Filing bankruptcy and wages garnished

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Contributor

Re: Filing bankruptcy and wages garnished

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?
Message 11 of 18
Valued Contributor

Re: Filing bankruptcy and wages garnished

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.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 12 of 18
Contributor

Re: Filing bankruptcy and wages garnished

Thank you for response. I have a consultation with a lawyer today. I will ask about rules and options specific to my state.
Message 13 of 18
Valued Contributor

Garnishment after filing

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?
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 14 of 18
Senior Contributor

Re: Garnishment after filing

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.


Fico 08: 734/716/734 TU/EX/EQ
Message 15 of 18
Valued Contributor

Re: Garnishment after filing

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.
Don’t take your credit for granted, use it with care! These days, catch me in the bankruptcy forum!?
Message 16 of 18
Established Member

Re: Garnishment after filing

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.

Message 17 of 18
Contributor

Re: Garnishment after filing

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.

Message 18 of 18
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