garnishment during 13 plan

[Lesa13]

This is a much discussed utility bill on the home I have not lived in for over 2.5 years that is only now being foreclosed on (3 weeks until the supposed foreclosure - we'll see if it actually happens).

I was making payments to the creditor (they had sued in our local court and we had worked out a plan for payment) but have fallen behind. They have re-filed a notice to lift the stay of execution WITH THE LOCAL COURT.

Because this bill is considered "outside" the BK, my BK atty refuses to get involved (creditor itself is inside BK but this particular bill is considered "post-petition" and they refused to amend their claim, as other creditors did).

I am obviously planning on attending the court hearing, will also file a suggestion of bankruptcy with them so they know what is going on. I have tried since getting the notice to lift the stay to call/write them with no response. Their normal procedure is just to garnish.

Worst case - local court says okay, garnish her wages. Do they have to still contact BK court in order to do that? (Creditor is well aware I am in BK) If they do garnish, do they take all of my paycheck after BK court gets its normal amount or do they only take a percentage?

Any help welcome.

Note: PLEASE, I really don't appreciate getting slammed and judged on here. I come here looking for help/answers that I AM UNABLE TO GET ANY OTHER WAY. On a previous question concerning an inheritance, I was sorry I asked since so many people wanted to tell me that I was "committing fraud against the court" without knowing the whole situation and basically made me sound as if I am a criminal. Thanks! If I want judgment, I can find it outside of this board!

So thanks in advance on this topice for any useful advice, information, comments.

[krielly]

I am wondering if a court could even put a garnishment on you while you are in a 13? Wouldn't you be considered insolvent, and therefore judgement proof? At least until after discharge?

What do others think?????

I'd ask a lawyer that very question.

[woeisme]

I think if you are in an active CH 13, that the trustee and BK judge have final say over your budget, and that the local court would have to wait until discharge to get their garnishment. I'd agree with kreilly, ask about this, because I think while you can't get new debt discharged, they can't make you pay on it either until the BK closes. Good luck.

[southerncomfort]

I think this is a complex legal matter that you will need to discuss with an attorney. However, if the trial court orders garnishment, I would think that would interfere with the trustee's right to your disposable income under your Chapter 13 plan.

The trial court will not "contact" the trustee. It will simply order a garnishment. It will be up to you or possibly the trustee (if he/she feels his rights are being impinged upon) to file a contrary motion once the trial court orders the garnishment. if evidence regarding the existing CH. 13 is brought up at the garnishment hearing it is possible that the trial court will set a time for another hearing and order that the parties conduct discovery so that the evidence pertaining to the existing 13 can be brought in.

In either case, I think you would be best served by hiring counsel.
Good luck with everything!