QUESTION
Can my wage be garnished for a chapter 13?
Asked on Dec 26th, 2012 on Bankruptcy - Michigan
More details to this question:
I am having 402 dollars garnished out of each check for chapter 13 bankruptcy I filed last year. Last week I have received a letter from work telling me that they were going to be garnishing my wages from money I owe the state for 128 dollars on top of that. Is this legal?
11 ANSWERS
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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No.
Answered on May 28th, 2013 at 1:19 AM
If the State of Michigan was included in your Chapter 13 case, this is not permitted.
Answered on Jan 04th, 2013 at 2:33 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Virtually any effort to collect against someone in a bankruptcy is prohibited by federal law. If you have a lawyer, notify him or her immediately and ask him/her to contact the state and make it stop. Or bring a contempt motion before the Bankruptcy Judge. Of course every situation is different, and there may be some excuse for the garnishment which is not disclosed in your question. If you have a lawyer, consult him or her. If you do not, you really should find one.
Answered on Jan 04th, 2013 at 8:10 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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No it is a violation of the stay. You should contact your lawyer.
Answered on Jan 04th, 2013 at 8:09 AM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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That should not have occurred IF you listed the State as a creditor. Your Chapter 13 plan should have included payments to the state for any Priority taxes or secured taxes. If the state was not listed as a creditor, then they didn't have proper notice. Your employer is probably going to garnish your wages until you or your bankruptcy attorney gets this sorted out. Notwithstanding the automatic stay in bankruptcy, unless the state gets notice of your bankruptcy case they can't know how to act. If they received proper notice, then they may have violated the automatic stay in bankruptcy.
Answered on Jan 04th, 2013 at 7:52 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Speak with the attorney who filed the chapter 13 for you.
Answered on Jan 04th, 2013 at 7:04 AM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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The Chapter 13 payment is not a garnishment but a automatic payment you set up voluntarily. Many jurisdictions all be require this but it is still technically voluntary. The state garnishment for taxes is not. If the taxes are for a pre-petition period, you could ask your atty to amend your plan to include them and pay them through the plan. If this was after you filed, then it can't be included in the plan. However, I would notify the State and make sure they know you are in Chapter 13 to try and get some relief.
Answered on Jan 04th, 2013 at 6:58 AM
Your tax debt should have been included as part of your Chapter 13 Plan. It isn't clear from your question whether the tax debt is being garnished to be turned over to the Chapter 13 Trustee or if the tax authorities are doing this on their own. If the former, than the garnishment is part of your Plan, if the latter, you need legal representation right now to resolve this issue.
Answered on Jan 04th, 2013 at 6:53 AM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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That State cannot garnish while you are in a Chapter 13. The Chapter 13 trustee has the power to do wage deductions, so this is legal. You need to inform your attorney that the state is trying to garnish as well so that can stop.
Answered on Jan 02nd, 2013 at 1:42 PM
Tom Arany
You need to call your bankruptcy attorney. Yes, you can be garnished in addition to the automatic deduction / wage order in place to pay your chapter 13 plan. But it's unclear whether your chapter 13 plan already addresses the state's claim against you or if it is possibly post-petition debt. Either way, when issues like this come up during your chapter 13, you should always call your attorney for help.
Answered on Jan 02nd, 2013 at 1:41 PM
No. Unless they received permission from the bankruptcy court to go around the automatic stay in place.
Answered on Jan 02nd, 2013 at 1:39 PM