Garnished by creditor but petition has been filed with bk court, how to stop it with employer?

Understanding Wage Garnishment During Bankruptcy: How to Proceed When Garnishment Has Already Begun

If you’re facing wage garnishment while in the process of filing for bankruptcy, you may find yourself in a complex situation. For example, suppose a creditor has served a writ of garnishment to your employer, but you’ve also filed a petition with the bankruptcy court. Navigating this scenario requires a clear understanding of the legal processes involved and how to effectively communicate with your employer.

Scenario Overview:

• On September 14, a writ of garnishment was served to your employer, initiating the withholding of a portion of your wages to satisfy a creditor’s claim.
• On September 18, you filed a bankruptcy petition through your attorney.
• You believe that an automatic stay is now in effect, which typically halts wrongful collection efforts, including garnishments.
• Despite this, your wages have already been garnished, and you’re unsure how to inform your employer formally to halt further deductions.

Legal Principles at Play:

When you file for bankruptcy, an automatic stay typically goes into effect immediately. This stay prohibits creditors from pursuing collection actions, including wage garnishments, with few exceptions. However, there can be delays in notification or enforcement, leading to scenarios where garnishments continue briefly after filing.

Steps to Stop Garnishment and Communicate with Your Employer:

1. Confirm Bankruptcy Filing and Automatic Stay:

2. Ensure that your bankruptcy case has been officially filed and that the automatic stay has been activated. Your attorney can provide documentation or confirmation of this.

3. Obtain the Bankruptcy Court Documentation:

4. Request a copy of the bankruptcy petition or case confirmation letter from your attorney or directly from the court records. This document serves as official proof of your bankruptcy filing.

5. Notify Your Employer in Writing:

6. Draft a formal notice to your employer’s payroll or HR department informing them of your bankruptcy filing.

7. Include a copy of the bankruptcy case confirmation or the docket entry showing the filing to demonstrate the automatic stay in effect.

8. Explicitly request that all garnishments cease immediately in accordance with the bankruptcy stay.

9. Provide Official Court Documentation:

10. Attach relevant court documents, such as the notice of bankruptcy filing or the bankruptcy petition receipt, to substantiate your claim.

11. If necessary, obtain a certified copy from the bankruptcy court to ensure authenticity.

12. Follow Up and Monitor:

13. Confirm that your employer has received and acted upon your notice.

14. Keep records of all correspondence for your files.

Additional Recommendations:

• Consult with Your Bankruptcy Attorney:

Your attorney can guide you through the process, ensure your rights are protected, and may request the release or modification of garnishments as part of your bankruptcy proceedings.

• Monitor Your Paychecks:

Verify that garnishments are either stopped or adjusted according to the court’s orders and your bankruptcy protections.

• Legal Exceptions:

Be aware that certain debts, such as student loans or taxes, may not be immediately dismissed by bankruptcy, and garnishment may continue for these debts under specific circumstances.

Conclusion:

While it can be distressing to see wages garnished after filing for bankruptcy, understanding the legal steps to halt such actions is crucial. Providing your employer with official proof of your bankruptcy case—such as a court-certified document—can help stop ongoing garnishments and ensure your rights are protected during this process. Always consult with a bankruptcy attorney to navigate these matters effectively and in accordance with current laws.