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If you have a garnisment coming out of you check from small claims court, and you file bankruptucy. Does the employer continue to take out the garnishment? I'm the employer and the petitioners are saying yes and the employee is saying no.
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Once you file a bankruptcy all garnishments must stop, if the employer receives an official bankruptcy court order or case number XXXXX the employee who filed they must stop the garnishment. However, in cases like this, the creditor who actually has the judgment, should be notified by the employee, and they usually will allow the employer to release it. The creditor must be listed in the bankruptcy filing as well.
Thanks!
Under the bankruptcy code, once a person files a bankruptcy petition, an "automatic stay" is given to the petitioner, which Stays all civil actions and garnsihments, as the employer you have to be made aware of this and must stop the garnsihment, and notify the creditor that a bankruptcy was filed and you have to stop the garnishment.
The creditor, would be in violation of Federal law, if they insist you garnish the wages, as long as the creditor was listed, and you can ask for a copy of the petition filied, they must stop all garnishment.
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Experience: 13 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS