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Monday July 14, 2014

Recovery of a pre-petition garnishment
posted by Jon Hodge
Tags: In the news 

Are your wages being garnished?  If so, filing bankruptcy can get that money back from the creditor who took your paycheck.  Under certain circumstances, a letter from our office to the creditor is all that it takes and the money is usually voluntarily returned.

Requirements to get the money back include that the creditor must have seized more than $600.00 within 90 days of the filing of your bankruptcy.  You must also disclose the garnishment and the lawsuit that lead to the garnishment and you must claim exemption to the proceeds of the garnishment.

The bankruptcy code actually gives your trustee the authority to recover the money, but if the trustee waives the right, the debtor, the person who filed bankruptcy, can demand return of the money.  In certain circumstances, return of your garnishment can actually pay for your bankruptcy costs.  For more information, please contact the office to discuss if this tool can be used for you.