RECOVERY OF GARNISHED WAGES AFTER FILING A CHAPTER 7 BANKRUPTCY


Its very commonplace for a client to visit a bankruptcy attorney. when he or she is about to be garnished by the employer. The client ultimately files a Chapter 7 and wipes out all of his dischargeable debt, generally credit cards, loans and credit card bills. How about the garnishment monies taken prior to the bankruptcy? Do you get that back? The answer may be yes, but it depends. If $600 or more was taken within the ninety day(90) period prior to the filing of the bankruptcy, it may be deemed a preference to that one creditor. If the creditor refuses to return those monies, then the attorney may commence an adversarial proceeding to recover those funds as a preferential transfer for the benefit of that creditor to the detriment of all other creditors. In simple language, the creditor may need to give back all the monies during that 90 day period. Not all attorneys are tuned into this. This is a nuance area of the law so you may need someone to fight for your rights and you need to get firm legal advice. If you need a Bronx/Westchester bankruptcy attorney, call for a free telephone consultation.

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