Q: Removing garnishment - Chapter 7
Someone owes me money and I won a default judgement and just filed for garnishment. I received notice that they are filling for Chapter 7. The email from the her lawyer said I had to contact her employer to remove the garnishment. Do I need to do this, or should they do this? Honestly, I don't want to make this any easier for her considering how many hoops I had to jump through and now I won't get paid back.
A: Yes. If they filed bankruptcy, you must release the garb immediately or run the risk of violating the automatic stay and being sanctioned for it
Clark Dray agrees with this answer
A: Stop the garnishment and then consult with a local creditors attorney to find out whether the debt is actually dischargeable in bankruptcy. If not, the attorney can let you know whether it's worth the time, effort, and money to pursue the issue further through the bankruptcy court.
A: Never demand payment (or continue with a garnishment) if someone is in bankruptcy - this can very VERY costly for you. There is a chance that they will fail to follow through with the bankruptcy and the case will be dismissed; at that time you can move forward with the garnishment. It is best for you to talk to an experienced bankruptcy attorney in order to determine your rights.
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