Exempted $ and Garnishments?

[Freddy03]

Well thank goodness the garnishment stopped this week. Now what? When do we get the money that was exempted and still garnished after we filed?

It's almost $1600!

Thanks!

[tobee43]

Well thank goodness the garnishment stopped this week. Now what? When do we get the money that was exempted and still garnished after we filed?

It's almost $1600!

Thanks!

really AFTER you filed they continued to take the money? i would ask your atty to find out how long the process takes here in the middle district. maybe jb might know???

[Freddy03]

Yeah I was going to call him tomorrow. I just wondered if anyone had any idea.

[tobee43]

good, i hope your atty gets back to you asap. that's good money there to get back.

[karm43]

Were these judgements? Did they just go straigt for your pay or did they try other means first? just wondering, We are a non garnishment state but worried about personal belonging they told me they would sherif sale every thing i own. ha well she was just a nasty person but i wonder how far they will take it.

[OHBOY]

Well thank goodness the garnishment stopped this week. Now what? When do we get the money that was exempted and still garnished after we filed?

It's almost $1600!

Thanks!

Freddy03:
is there another link that describes the details of the garnishment that you are mentioning ? If not, could you PLEASE (!) give details ? (or kindly send a PM)......I sure would like to hear about your experience, especially as everything I own is exempted.......

[karm43]

Actually I just read that sticky.

[Freddy03]

My garnishments came from a judgment awarded to a creditor I fought for almost a year in court.

[tobee43]

My garnishments came from a judgment awarded to a creditor I fought for almost a year in court.

you know i'm thinking about this....one would think that you would have to file the motion to vacate the judgment first? and then it would effect the garnish.

which can only be done after the discharge??? unless another knows different???

[DesdemonaB]

Well thank goodness the garnishment stopped this week. Now what? When do we get the money that was exempted and still garnished after we filed?

It's almost $1600!

Thanks!

Hi Freddy

To answer tobee's question - wage garnishment can not stop untill the payroll department/company receives a garnishment release signed and filed by the court that issued the WoG. The garnishment release is filed by the plaintiff after they receive the BK peition, once the release is signed and file it is just sent first class mail to the payroll department/company who then have to sign for acknowledgement of release and then the garnishment will stop.

The release will have a hard stop date for the garnishments, it will state that any funds garnished after that date will be return to the defendent. The payroll department/company then will start the process of refunding the funds either by directly returning them to a paycheck or issuing in a separate check. Because these funds were already taxed there will be no taxes taken out.

My hard stop date was November 12 the date I filed, the release was submitted to the court 11.19 but it wasn't signed till 12.1 mailed 12.2 of course this missed my first bi-weekly pay period for December so I did not get my first refund till 12.23, I received the second refund in January.

I did fax over a letter to the plaintiff with a copy of the release state they must return any funds they received after 11.12 - but I found out that in the state of MI the funds must be held for 21 days before they could be sent to the plaintiff so they never really left my payroll department so my refunds came directly back to my payroll.

Because every company has a different payroll process it is hard to pinpoint exactly when the refunds will hit. You may also have to contact the plaintiff if your payroll department/company released the funds to them. Your lawyer may ask for a % of any funds recovered if they contact the plaintiff - IMHO I would just fax over a letter with the release and try to recover yourself. If they give you poop, then ask the lawyer.

Did your trustee inquiry about the funds? Did you exempt them? I personally would hold spending till you receive your report of no distribution just in case. That's what I did, once I receive the initial report that my trustee only wanted my tax refund, I spent the funds.

[tobee43]

thanks for the clarification. however, then what happens to the actual judgment if it's not eventually vacated???

[Freddy03]

Hi Freddy

To answer tobee's question - wage garnishment can not stop untill the payroll department/company receives a garnishment release signed and filed by the court that issued the WoG. The garnishment release is filed by the plaintiff after they receive the BK peition, once the release is signed and file it is just sent first class mail to the payroll department/company who then have to sign for acknowledgement of release and then the garnishment will stop.

The release will have a hard stop date for the garnishments, it will state that any funds garnished after that date will be return to the defendent. The payroll department/company then will start the process of refunding the funds either by directly returning them to a paycheck or issuing in a separate check. Because these funds were already taxed there will be no taxes taken out.

My hard stop date was November 12 the date I filed, the release was submitted to the court 11.19 but it wasn't signed till 12.1 mailed 12.2 of course this missed my first bi-weekly pay period for December so I did not get my first refund till 12.23, I received the second refund in January.

I did fax over a letter to the plaintiff with a copy of the release state they must return any funds they received after 11.12 - but I found out that in the state of MI the funds must be held for 21 days before they could be sent to the plaintiff so they never really left my payroll department so my refunds came directly back to my payroll.

Because every company has a different payroll process it is hard to pinpoint exactly when the refunds will hit. You may also have to contact the plaintiff if your payroll department/company released the funds to them. Your lawyer may ask for a % of any funds recovered if they contact the plaintiff - IMHO I would just fax over a letter with the release and try to recover yourself. If they give you poop, then ask the lawyer.

Did your trustee inquiry about the funds? Did you exempt them? I personally would hold spending till you receive your report of no distribution just in case. That's what I did, once I receive the initial report that my trustee only wanted my tax refund, I spent the funds.

Thanks for the info!

The garnishment just stopped this pay period. Since filing they did garnish 2 checks. The dissolving garnishment date was 07/25/11.

My attorney was able to exempt the 3 paychecks that were garnished prior to filing. The trustee never questioned it during the 341. It's about $850. I am unsure on how do I get that back.

I'm still waiting for my attorney to call me today about this.

[DesdemonaB]

thanks for the clarification. however, then what happens to the actual judgment if it's not eventually vacated???

The judgement still stand it is just listed as satisfied, I still have to go down to the court house file the motion to vacate due to dischage in BK. I just haven't gotten around to it yet, but it's on the to do list.

[DesdemonaB]

Freddy

I would call/e-mail your payroll department and ask what happen to the funds that were taken after the 25th. Ask if they forward the funds to the plaintiff yet, your state might have the 21 day hold like mine. If the funds have not been forwarded to the plaintiff yet ask them to refund them directly back on your paycheck. You might get lucky and your lawyer doesn't have to do anything. It can't hurt to ask, and I bet they will answer faster then the lawyer.

[Freddy03]

Freddy

I would call/e-mail your payroll department and ask what happen to the funds that were taken after the 25th. Ask if they forward the funds to the plaintiff yet, your state might have the 21 day hold like mine. If the funds have not been forwarded to the plaintiff yet ask them to refund them directly back on your paycheck. You might get lucky and your lawyer doesn't have to do anything. It can't hurt to ask, and I bet they will answer faster then the lawyer.

Thanks again

Unfortunately I can not contact the payroll department directly. I'll just have to wait for the attorney to call back.