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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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A debtor filed Chapter 13 on 10/31/12. A creditor, who had

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A debtor filed Chapter 13 on 10/31/12. A creditor, who had been garnishing the debtor's wages, did not get the Chapter 13 notice until two weeks later. Because of this, the creditor garnished the debtor's wages for a pay period after the 10/31/12 filing date. Once the creditor received the bankruptcy notice, it sent a cashier's check to the debtor's attorney to make up for the wages that should not have been garnished.

Should the debtor's attorney deposit the cashier's check into the firm's trust fund and then use the trust fund to write a check out to the debtor? Or is it o.k. for the debtor's attorney to just mail the cashier's check directly to the debtor?

cfortunato : Hi JACustomer,
cfortunato : lf the check is payable to the debtor, the check should be sent directly to the debtor.
cfortunato : If the check is payable to the attorney, it should be deposited into the attorney's account, and allowed to clear before issuing a corresponding check to the debtor.
cfortunato : I think this is what you wanted to know. If not, please let me know.
cfortunato : Thank you.

I am not able to rate your answer for some reason - when I try to select a rating, it does not highlight, and will not let me select one.

cfortunato :

You should be able to provide a rating now.

cfortunato : Thank you!
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