Garnishment of wages....can they do this?

[brokeinmichigan]

Not sure if this should be posted here or in General Bankruptcy or in Collections...

Today I received in the mail a court document for a garnishment of wages from a creditor listed in our BK filing (Household Finance).

Prior to our filing, they had just started a garnishment to the tune of about 20% of my pay, but when we filed our attorney did whatever attorneys do, and the garnishment stopped. Now, today...this. It looks identical to the first order, but with a new date.

Am I correct that they are not to collect or attempt to collect this debt while we are in the process of BK? I know for certain that they are aware as I spoke with them directly when they continued to call after we had filed...I gave them our atty name & contact info along with our case number.

Anyone care to venture a guess?


Hoping for brighter skies ahead...

[SinkingFast]

Be sure to check your Schedule F and your Creditor's Matrix to see that HFC was listed and indeed the Clerk mailed a notice to them.

If all of that is in order, then HFC is violating the Automatic Stay.

Once you're discharged, a permanent injunction exists against Creditors trying to collect debts listed in your BK Petition.

[brokeinmichigan]

We've never received a Schedule F or Creditors Matrix....I'll bet we probably should have, though...right?

Also, we haven't been discharged yet...just filed April 7, awaiting 341 meeting now...

Still, all of the other creditor calls have stopped, which is nice! Even the calls from the law firm/collection firm for Household hasn't called...this just showed up in the mail today.

Can the re-start a garnishment that was halted because of our filing?

[CindyLou]

They cannot violate the stay. Call your attorney and make sure they were notified. Give your attorney a copy of the letter. I would also call the creditor, get their fax #, and send them a copy of your notice of filing. That should get them off your back. I am guessing it was a mix up on their part and it should be easily resolved. Good luck.

[jal1129]

You can check your creditor matrix and schedules on pacer and print everything from there. Its probably just a mix up. Call your lawyer first thing Monday morning. If they do take anything they will have to give it back.

[brokeinmichigan]

Once again, you all have been very helpful. As I continue to learn to navigate this tumultuous sea of BK, I'm so thankful for this group.

So, I checked PACER for the Schedule F, and after just a wee bit of searching, found it. And, lo and behold, there listed as Creditor #12 is Household Finance Corp...the very same ones who issued a writ of garnishment to me this week. Interestingly, Creditor #16 is the Atty for Household Finance (who actually issued the garnishment thing), with a claim amount of $0. UGH.....I'll email the paralegal tonight, so she can magically fix it Monday...maybe it won't even affect my next paycheck! Which would really be splendid...

Hoping for brighter skies ahead...

[ilovemycaitybug]

I hope it gets fixed before your next check, but I bet if they know they're violating the stay they'll stop REAL quick!

[SinkingFast]

Your Schedule F isn't necessarily wrong in saying $0 to the attny. Often times, BK attnys have to list multiple Collections Agencies and Law Firms for one particular acct.

The $$$ amount should show with the original Creditor, HFC. Along with your HFC acct number and HFC's mailing address.

The attny who sent you the Garnishment Suit should be listed as "Representing Household Finance", your HFC acct number, and the attny's mailing address.

Hopefully, that's the way your attny listed this attny on your Schedule F.

Regardless,............ This attny should know better. He/she is a Creditor's attny. They've been notified of your BK Filing. They should know there's an Automatic Stay during BK and a permanent injunction upon Discharge.

If this notice had come within a week of your filing, it could easily be dismissed as crossing in the mail. But this is 3 weeks since you filed. This attny most definitely should have been notified. Either by receipt of the mail or by their client, HFC.

[lrprn]

The bk courts take the automatic stay VERY seriously, and they have a history of going after those creditors who violate it. HFC just left themselves wide open for a lawsuit with monetary damages if you and your lawyer would decide to pursue it. Be sure to keep the original of that letter and its envelope with the mailing date in a safe place!

[spell]

It helps my sunny disposition to assume the first instance is a mistake. Pass a copy to your attorney and have him reitterate the automatic stay.

If they continue. Throw the book at them.