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    #1

    One Month Post Filing and Wages Are Still Being Garnished

    So I filed a Chapter 7 on April 21, my 341 is May 28. My wages have been garnished since September by the state of Maryland for unpaid taxes. They are taking 25% of my pay post tax each week. (I am paid weekly). I am very aware my tax debt will not go away in the bankruptcy, but aren't they supposed to stop the garnishment regardless while the bankruptcy case proceeds?

    I have an attorney and I told him two weeks ago that my wages were still being garnished. He said, at that time, the state may just be receiving notice of the bankruptcy etc. But he would look into it if the garnishment stayed in place much longer. I emailed him this morning to let him know the garnishment was still in effect.

    In the end, since I owe the debt, I guess I really don't mind the garnishment, as long as it is going towards an non-dischargable debt. I was just under the impression it was supposed to stop shortly after I have filed.
    Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11
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    #2
    It absolutely should have stopped. Have your attorney get on this one..
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

    Comment

      #3
      The State of Maryland is notorious for disregarding the Bankruptcy court orders. There are several actions where they ignored discharges and people were forced to re-open their case and file an AP to stop them. I would talk to your attorney immediately. When you are dealing with a government entity they do not feel accountable like private business.

      Comment

        #4
        Thanks for the response. I have emailed my attorney. It's irritating to still have a garnishment in place after filing, regardless if I owe the debt post bankruptcy or not. I don't see how Maryland is "above the law" but it is afterall...Maryland...LOL...I'd much prefer to have the garnishment stopped and make payments to them myself, mostly because I certainly wouldn't pay them 25% of my net wages each month, that's a little steep, one of the reasons I went bankrupt in the first place.
        Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

        Comment

          #5
          That's just unreal disconapper UNREAL!!

          I wonder if the IRS will do the same - I stopped paying payment plan because of spouse's 13 which provides for payment in full of back taxes...good God...always something isn't it?

          Comment

            #6
            Yes, IamOld, it is always something. I owe the IRS as well and they have been SILENT since the filing, the state of Maryland...not so much. I know I can not personally stop the garnishment by contacting my payroll department, so my hands are tied, it's just a pain in the hind-parts so to speak. And being that I'm "bankrupt" I could certainly use the money, 25% is ridiculous amount post tax, I'm not denying the debt what so ever. They initiated the garnishment when I was laid off and I happened to come back to the same job...first paycheck back...BAM...money gone. LOL. Hopefully my attorney can use a cattle prod to get the state moving.
            Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

            Comment

              #7
              Originally posted by disconapper View Post
              Yes, IamOld, it is always something. I owe the IRS as well and they have been SILENT since the filing, the state of Maryland...not so much. I know I can not personally stop the garnishment by contacting my payroll department, so my hands are tied, it's just a pain in the hind-parts so to speak. And being that I'm "bankrupt" I could certainly use the money, 25% is ridiculous amount post tax, I'm not denying the debt what so ever. They initiated the garnishment when I was laid off and I happened to come back to the same job...first paycheck back...BAM...money gone. LOL. Hopefully my attorney can use a cattle prod to get the state moving.
              Thank you disconapper - I am always also appalled at employers who don't want to stop garnishments when they receive the automatic stay order - that is a FEDERAL court order that trumps everything else - including MD!!! Yes, you should get the atty going on that asap!!!! At least you could get a breather while the bk goes on...

              Comment

                #8
                Exactly, IamOld, I planned on using that 25% "extra" income to save for a replacement car. And yes, the federal court trumps all other entities indeed. It's a shame Maryland doesn't have it's stuff together (in more ways than one). And after 1 month post filing, the state can't really convince me that they haven't received the notice. Especially since it was sent from a Maryland District bankruptcy court to the State of Maryland. LMAO. It's laughable at this point, ugh I hate this state's government, but the job market and income levels are great (well, if they'd only give me my darn income...hehehe). I'd much rather pay them monthly. But on the bright side of things, due to the large garnishment, the tax debt that is owed is nearly paid off...so I'll take the glass half full approach until my attorney resolves the issue.
                Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

                Comment

                  #9
                  You certainly have a much better/brighter outlook on life!!! And I agree - I decided not to take a job in NC because I feared what would happen were I to loose that job...for whatever reason - living in "expensive urban area" at least there are (for now) jobs!!!!! But dear God is everything expensive...


                  Originally posted by disconapper View Post
                  Exactly, IamOld, I planned on using that 25% "extra" income to save for a replacement car. And yes, the federal court trumps all other entities indeed. It's a shame Maryland doesn't have it's stuff together (in more ways than one). And after 1 month post filing, the state can't really convince me that they haven't received the notice. Especially since it was sent from a Maryland District bankruptcy court to the State of Maryland. LMAO. It's laughable at this point, ugh I hate this state's government, but the job market and income levels are great (well, if they'd only give me my darn income...hehehe). I'd much rather pay them monthly. But on the bright side of things, due to the large garnishment, the tax debt that is owed is nearly paid off...so I'll take the glass half full approach until my attorney resolves the issue.

                  Comment

                    #10
                    So my attorney called the state on Friday and I did as well. I'm not sure what he found out yet (it was late Friday afternoon) but Maryland told me this exact thing (after waiting on hold for a lovely 20 minutes):

                    Maryland: "You know, taxes were recently sent in so we are quite overwhelmed with mail, we may have not gotten to the notice as of yet. If you could go to the website and look up the fax number for the compliance division and fax us the information that would be great."

                    Me: "Wait, my notice was sent to the Compliance division, specifically the collections department, not the same address as I sent in my taxes."

                    Maryland: "Oh, okay. Well, I'm sure they will get to it shortly. Please fax in the information."

                    Me: "Ha, yea, I'm sure they will. (sarcasm). I'll look up the fax number. Do you have the fax number?"

                    Maryland: "No, I do not have the fax number. What type of bankruptcy did you file?"

                    Me: "Chapter 7"

                    Maryland: "Well, you do know that debt is not discharged, so you are going to owe the money regardless."

                    Me: "I'm quite aware of what is discharged and what is not discharged. I'm not trying to not pay the back taxes. I'm trying to get the rights I'm entitled to by filing for bankruptcy protection."

                    Maryland: "Oh, ok, well look up that phone number on the website and I'm sure they will handle it."

                    Me: "Would you like the bankruptcy case number so you can begin an inquiry?"

                    Maryland: "No, the Compliance division handles that."

                    Me: "So, what's their number?"

                    Maryland: "That is also on the website, I don't have that information."

                    Me: "Ok, well great, thanks for your help. (sarcasm) Have a good weekend."

                    So, of course the website doesn't have the information I need, or at least not that I could find. I did find an email address for the Compliance division and sent them an email and copied my attorney. Hopefully my attorney knows the direct number. It's humorous at this point, somehow I knew this Maryland wage garnishment was going to be the only thorn in my side in this whole process. LOL, and man was I right.
                    Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

                    Comment

                      #11
                      Course now I found the fax number on the website....
                      Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

                      Comment

                        #12
                        So, an Attorney for the State of Maryland just replied to my email. She said, there is no need for me to fax anything, since I have supplied my case number in the email, that was sufficient information. She said that would stop the garnishment immediately and refund the amount taken over the last five weeks. That's actually great and quite surprising news, but lets see how long that takes...LOL
                        Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

                        Comment

                          #13
                          Originally posted by disconapper View Post
                          So, an Attorney for the State of Maryland just replied to my email. She said, there is no need for me to fax anything, since I have supplied my case number in the email, that was sufficient information. She said that would stop the garnishment immediately and refund the amount taken over the last five weeks. That's actually great and quite surprising news, but lets see how long that takes...LOL
                          Good! SOmetimes it does seem that one needs to keep going and going and going.... :-)

                          Comment

                            #14
                            Originally posted by disconapper View Post
                            So, an Attorney for the State of Maryland just replied to my email. She said, there is no need for me to fax anything, since I have supplied my case number in the email, that was sufficient information. She said that would stop the garnishment immediately and refund the amount taken over the last five weeks. That's actually great and quite surprising news, but lets see how long that takes...LOL
                            Hi Disconapper

                            Careful if you get the refund back before your 341 don't spend it as your UST might want it. My UST inquired about it, she wanted the total amount garnished and the total amount returned and she asked for all my paystubs showing the garnishments. In the end she didn't pursue it, but it was just over 700 returned. You might want to have copies of the paystubs ready in case you asked at your 341, better to be safe then caught off guard.

                            Good luck with everything.
                            Filed Pro Se: 11.12.2010 ~ 341: 1.12.2011 ~ Discharged: 3.9.2011 ~ Officially an Asset Case: 3.30.2011 ~ Last Day to File Asset Claim: 6.28.2011 ~ Trustee Final Report: 8.1.2011 ~ Asset Distribution: 8.31.2011 ~ Case Close: 11.15.2011

                            Comment

                              #15
                              Originally posted by DesdemonaB View Post
                              Hi Disconapper

                              Careful if you get the refund back before your 341 don't spend it as your UST might want it. My UST inquired about it, she wanted the total amount garnished and the total amount returned and she asked for all my paystubs showing the garnishments. In the end she didn't pursue it, but it was just over 700 returned. You might want to have copies of the paystubs ready in case you asked at your 341, better to be safe then caught off guard.

                              Good luck with everything.
                              Thank you very much for the feedback DesdemonaB. I hadn't even thought of that. My 341 is on the 31st (next Tuesday), I doubt I'll get any sort of refund before that time. Since I owe the money regardless, I actually would rather not even have a refund, I'd rather the state just keep the money and just stop the garnishment.

                              But I have a notebook neatly divided into sections, including paystubs, bank statements, every single account including in the bankruptcy, tax returns etc...that notebook is for me to take to the 341.
                              Chapter 7 Filed: 04/21/2011, 341 Meeting: 05/31/2011, Report of No Distrubution: 06/02/2011, Discharged: 08/03/2011, Closed: 08/10/11

                              Comment

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