Garnishments

Garnishments are a major issue for many of our clients, especially if they are already having difficulty meeting their other monthly obligations.  Once your bankruptcy is filed, an automatic stay goes into effect which acts like  a knife, cutting off the creditors right to collect from you.  This is true even if the creditor has already obtained a judgement or court order. The filing of the bankruptcy, and the notice associated with it,  acts as a superior court order that overrides the state court order for garnishment.   Unfortunately, many employers and financial institutions are not aware of this unique feature of the bankruptcy code and continue to seek collection activity in violation of the federal law.  If that occurs, DON’T PANIC, and call your bankruptcy attorney immediately!

In most cases we can get your money back for you. In fact, you may be entitled to return of funds that were garnished up to 90 days prior to the actual filing of the bankruptcy.   In extreme cases, when an employer or creditor has been notified of the bankruptcy but still refuse to cease collection, the court has the ability to hold that creditor in contempt and award damages and other monetary compensation for the damage caused by their continued collection activity.

Also, there are some creditors who have the right to continue to offset income despite the bankruptcy filing.  These include certain tax authority obligations, child support and/or spousal support obligations and debts incurred for restitution or criminal penalties.

Contact an Experienced Elizabethtown Bankruptcy Attorney

Our law firm represents clients throughout central Kentucky. Contact our office by calling 270-506-4052 or use our convenient online contact form to schedule a free consultation with an Elizabethtown bankruptcy lawyer.