Garnishment & BK7

[DesdemonaB]

Hello All

First post here at BK Forum - be kind.

I thought I read somewhere here on this board that if you had a on-going garnishment, then file BK with the automotic stays the granishment stop, but if you are garnished by error the creditor has to pay you back - is that true?

My garnishment started with my 10.14.2010 check, I am paid bi-weekly. I was able to file 11.12.2010 which meant they got $$ on my 10.14 and 10.28 checks but for some reason I wasn't granished on 11.11, but I was then granishment started again on the 11.25 check.

If it is true that if you are garnished in error (after filing BK 7), shouldn't I be owed the $$ from my 11.25 check?

[keepinitreal]

Yes DesdemonaB, all collection activities, including garnishments, should stop after you file bankruptcy. If you filed with a lawyer, ask for a letter to be written to your employer and to the creditor garnisheeing your wages demanding that they stop immediately and refund the ill-gotten gains of 11/25.

[DesdemonaB]

Thanks keepinitreal

I filed pro se, I am an no asset BK7 so no lawyer - I did scan and send my payroll department a copy of the filing this morning to ensure that my 12.9 check is left alone but she is out to Monday (vacation) so hopefully that will be enough time to get it out of the system. But to who and what do I send to get my refund?

[frogger]

But to who and what do I send to get my refund?

Check with your employer payroll department. Although your check is garnished each pay period, many times it is not sent to the courts but once a month.

Your company may still have the money in-house if it has not been sent off. If so, it's easy for them to just release it back to you, provided you have given them proper documentation of the bk filing.

Good luck.

[DesdemonaB]

Small Update:

Got home from work last night and I have a release of Garnishment in the mail - but it was for the Tax Refund they filed at the same time they filed for the wages. They filed for everything, wages, bank account and tax refund. They didn't get anything from bank- account closed - they got the wages and I can only assume they would have gotten the refund if I didn't file BK . Funny thing is the release for the tax refund stated that it would refund anything collected from 10.28.2010 forward - I didn't file till 11.12.2010, I wonder if it works the same for wages cuz then I would get two refunds.

I did fax over the BK petition and a letter asking for the refund of my $$ from my 11.12.2010 check yesterday morning, I will give them 5 business days to comply.

[bk2009]

How in the world can they get your income tax? Unless it's for unpaid taxes or a student loan?

[DesdemonaB]

How in the world can they get your income tax? Unless it's for unpaid taxes or a student loan?

It is my understand that in the state of MI they can come after your state taxes for payment in civil lawsuits. I do a friend's taxes - been doing them for four years now she got sued by Cap One for a CC she took out when she was 21, they sued, she didn't show, they got a defult judgement. She workes in childcare and quit her daycare job to nanny under the table, she has no bank account or no "paycheck" to garnish so they got her 2009 State of MI refund. She wasn't suprised when I read her the message on the Trustary website that stated the refund was seized and said if they take next year's 2010 she would have the thing paid.

I believe she knew that they were going to seize the refund as she told me to put her son under her boyfriend (the dad) so they would get the most of their refunds.

[DesdemonaB]

Hello All

Quick Update - my employer received the release of Garnishment as well as the refund check - they sent the check to them / maded out to them - so I will receive my refund but not til my 12.23.2010 paycheck.