Q: Can I make an offer to settle and stop a garnishment? I have a judgement & garnishment against me for an auto.
Also, would this prevent having to file bankruptcy?
A:
You can certainly make an offer or lump sum payment to stop a garnishment, assuming the creditor will agree. This will not keep you from filing bankruptcy, however a large payment to a creditor within 90 days of the date you file bankruptcy would be deemed a preference, or a preferential payment, to the creditor. These preference payments can be recovered by the bankruptcy trustee if they are within the 90 day window. It does not keep you from filing, however, in this instance, the money would be taken from the auto creditor and be given to the bankruptcy trusree.
The bankruptcy trustee would distribute the recovered funds to your creditors, after the trustee takes his or her expenses fees . As you can see, if you were to file bankruptcy within 90 days of making such a payment, your settlement payment would be a wasted effort and expense. My suggestion is that you immediately meet with a bankruptcy attorney to plan the best course of action. Your plan to settle the judgment and garnishment issue with the creditor may make sense, IF you have no other reason to file bankruptcy in the foreseeable future.
2 users found this answer helpful
A: Yes you can. Making an accord and satisfaction would not preclude a subsequent bankruptcy filing.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
