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CalAttorney2
CalAttorney2, Attorney
Category: Bankruptcy Law
Satisfied Customers: 10238
Experience:  Civil litigation attorney for individuals and businesses.
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Funds judgment were seized out of a bank account, then we

Customer Question

Funds for a judgment were seized out of a bank account, then we filed for a claim of exemption based on the amount being less than $1000.00 and checked off the box for this statute: CGS § 52-352b. The court date was missed and I just learned that the judged denied the motion for exemption (presumably due to missing?) Anyway, if a chapter 7 bankruptcy is filed, would that money be returned?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

I am sorry to learn of this matter. (Unfortunately you are probably correct, missing the hearing date will result in your motion being denied).

Filing a bankruptcy now will not recover the money that was already levied. It will prevent the creditor from taking any more money from you (it protects your "post-petition" assets (meaning everything after the date of filing)).

Customer: replied 1 year ago.

what if the funds have not been turned over yet?

Expert:  CalAttorney2 replied 1 year ago.

Usually if the hearing date has passed, the date to remit the funds to the creditor has also passed.

But if this is not the case, and the funds are still being held, a bankruptcy petition could potentially stop this transfer. You would have to give notice of the bankruptcy filing to all parties in order to stop the transfer (this takes affirmative action by you, the debtor, nobody will do this for you, and you while there is an "automatic stay" if the creditor acts "in good faith" - completes their levy with no actual knowledge of your bankruptcy - you are unlikely to get relief from the bankruptcy court).

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