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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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A creditor is receiving court ordered payments from an employer

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A creditor is receiving court ordered payments from an employer of the debtor and the debtor files for backrupsy but payments continue to come in from the employer - can the payments be kept?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

This is a dangerous issue, if the creditor is aware of the bankruptcy filing,

WALLSTREETESQ :

the creditor should not continue to accept a garnishment and payments,

WALLSTREETESQ :

If the payments were from a time period prior to the bankruptcy filing, it would be fine to keep the money, however any funds that came after the filing for a time period after filing is dangerous, and the Court could force you to return the money.

WALLSTREETESQ :

The creditor, once given notice, should contact the employer or collections agency to stop the garnishment, as all collections have to stop.

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