They are still garnishing paycheck!!!

[hrlylvr2003]

I was informed by me employer the beginning of March that my wages were set to be garnished the next month. I filed for ch. 7 on March 17th. I took a copy of the "automatic stay to my employer and the creditor". I thought everything would be settled. The creditor sent a letter to my employer stating that as of March 17th "the writ of garnishment was dropped" and "Please cease all withholdings for the employee in this matter os of March 17th". Taken care of right? No, my employer said that the creditor was still due my pre-earnings up until the 16th. I tried explaining the automatic stay but this women in payroll said she would have to call the company lawyer to contact my lawyer. I told her I did not have a lawyer. She said the name on the automatic stay-I told her that was just my bankruptcy trustee. Anyway, the company lawyer contacted the trustee and was told to withhold the earnings. So they told me that on my next paycheck that $600 would be sent to the creditor. I don't know what to do, can they really take money from me after I filed ch. 7 even if it is technically money I earned before I filed but have yet to be paid?

[jlmaca]

I was informed by me employer the beginning of March that my wages were set to be garnished the next month. I filed for ch. 7 on March 17th. I took a copy of the "automatic stay to my employer and the creditor". I thought everything would be settled. The creditor sent a letter to my employer stating that as of March 17th "the writ of garnishment was dropped" and "Please cease all withholdings for the employee in this matter os of March 17th". Taken care of right? No, my employer said that the creditor was still due my pre-earnings up until the 16th. I tried explaining the automatic stay but this women in payroll said she would have to call the company lawyer to contact my lawyer. I told her I did not have a lawyer. She said the name on the automatic stay-I told her that was just my bankruptcy trustee. Anyway, the company lawyer contacted the trustee and was told to withhold the earnings. So they told me that on my next paycheck that $600 would be sent to the creditor. I don't know what to do, can they really take money from me after I filed ch. 7 even if it is technically money I earned before I filed but have yet to be paid?

Opinion only but I always thought the automatic stay halts all collection actions no matter what. Now proving that to your payroll department without an attorney is going to be difficult. Maybe you could call an attorney and see if they would handle it for a set fee.

[SunshineGal]

At $600 per pay it sounds like a preferential payment.

[justbroke]

This is one of the many issues that face a pro se Debtor. What you're learning is the technicality of the "automatic stay" and what happens in the real world. The automatic stay isn't something that everyone even understands. The continued garnishment is probably a per se violation. The creditor's continued exercise control over your "post-petition" estate is also an issue. The only garnishment that the Automatic Stay doesn't stop, are those that were imposed as part of a domestic support order.

You really need to file a Motion to Compel Turnover on the creditor for any amounts received post-petition. You really need to get an order to stop the garnishment as well. You probably should serve the Notice of Bankruptcy on your employer and file a Certificate of Service. If they don't stop, you can hold them (the employer) in contempt later.

How you proceed against the creditor is important, as well. You need to make a 5 day demand against them to turn over all funds in their possession and to stop exercising control over your property. Additionally, inform them that you'll file a Motion for Violation of Automatic Stay on Day 6, seeking sanctions. The key is... follow through on DAY 6. Make sure you request an expedited (emergency) hearing on the matter.

I would have a formal letter and the Notice of Bankruptcy in front of your Employer and their attorney tomorrow morning. I'd deliver via FAX, eMail and by Certified Mail Return Receipt. The letter to the employer should equally say that they have to immediately comply.

While you're just finding this out, many creditor and company attorneys seem to just ignore pro se debtors because, frankly, pro se debtors don't know what to do or what they are doing.

You might be able to find an attorney willing to take on a stay violation complaint "pro hac vice" and on contingency.

[MSbklawyer]

Completely off topic, but I was looking at your sign in name, hrlylvr, and I was coming up with "hourly lover". I had to think about for about 10 minutes and then I was like OOOOOOOOOOOOOOH, Harley Lover. I'm slow that way sometimes.