I filed bankruptcy today. My payroll department processes tomorrow. My Wages have been garnished once. I called the creditor who is garnishing and was told they don't intend to notify my employer of the bankrutpcy and will collect the garnishment of my next paycheck. The gal I spoke to stated they are entitled to that money.I thought creditors could not take these actions after I file?
Hi - my name is XXXXX XXXXX X'm a Bankruptcy litigation attorney here to assist you.
You're correct that once you file, creditors are IMMEDIATELY prohibited from continuing any collection attempts as under the provisions of the automatic stay: http://www.law.cornell.edu/uscode/text/11/362. Here's a link that explains what the automatic stay does: http://en.wikipedia.org/wiki/Automatic_stay.
You should inform your employer of the bankruptcy filing and provide a case number XXXXX other information to prove that bankruptcy has been filed in order to stop the Garnishment.
Also, I would recommend that you inform your attorney that this creditor has said it will disregard the automatic stay and try to collect. Your attorney can file a motion with the court to stop it if necessary. Also, the creditor could be stripped of its claim against you/your estate for violating the automatic stay, so it needs to be careful as well.
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