QUESTION
If I make a large deposit to bank after chapter 7 discharge, will it be garnished by my creditors?
Asked on Nov 14th, 2013 on Bankruptcy - New Jersey
More details to this question:
I just received 6 thousand dollars from my friend for a debt he owed to me a year or so before I got a Chapter 7 discharge (12/2012). I am afraid to deposit this money into a bank account for fear that it will be garnished by one or all of the creditors I listed in my Chapter 7 bankruptcy which was discharged in December of 2012. Can this money be garnished by any of the creditors in my chapter 7 discharge? All the creditors were unsecured creditors.
12 ANSWERS
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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The question is missing a critical fact. Since the debt owed to you was owed before the filing of your bankruptcy case, did you list the debt owed to you as an asset and exempted it in your petition? The account is not likely to be garnished. However, if the asset was NOT disclosed and exempted and the Trustee finds out about this they can reopen your case in order to take the money and distribute it to your creditors.
Answered on Nov 19th, 2013 at 6:04 PM
Because you were owed this money before you filed bankruptcy, unless you disclosed it and exempted it in your bankruptcy, it isn't your money. It belongs to your bankruptcy estate and you should contact your bankruptcy trustee about turning over the check to be administered.
Answered on Nov 15th, 2013 at 1:39 PM
2 Awards
The debt was discharged. You are free to deposit the funds into your account. If a creditor garnishes the funds then you have grounds to sue them for violating the permanent injunction. Hopefully, you listed the "asset" on your bankruptcy petition and the trustee closed your case without attempting to collect the loan from your friend. Otherwise, technically the money should be disclosed to the trustee in your case.
Answered on Nov 15th, 2013 at 1:38 PM
Deborah F. Bowinski
Hopefully, you listed that money that was owed to you as an asset in your property schedules and claimed any exemptions for it that you may have been entitled to claim. If not, that could be problematic. Your listed creditors cannot garnish your bank account.
Answered on Nov 15th, 2013 at 1:38 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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No, your creditors, if discharged, are barred from collecting from you. However, you had an obligation to disclose the money owed to you on your paperwork as an asset in your bankruptcy and exempt it to the extent possible. Assuming you did so, and the trustee filed a no asset report, you have nothing to worry about now. If you have any questions, contact your attorney who filed your case.
Answered on Nov 15th, 2013 at 1:37 PM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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All of your debts should have been discharged in your bankruptcy. As to the money that you received, assuming that you listed that amount due to you on your Schedule B and exempted it on your Schedule C, you should be able to keep the funds and not worry about losing them. If you did not list the asset on your Schedule B, the trustee could reopen your case and demand the turn-over of the funds. You should speak with your attorney.
Answered on Nov 15th, 2013 at 1:37 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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None of these creditors discharged in your bankruptcy can do anything to collect against the $6,000. You will be fine in that regard. However, if you did not disclose that this friend owed you $6,000 on your bankruptcy schedules and the Trustee finds out, he can reopen your bankruptcy and claim the money to pay out to creditors. That is, if your friend owed you the money the day you filed your bankruptcy. Visit with your bankruptcy attorney.
Answered on Nov 15th, 2013 at 1:37 PM
Bankruptcy Attorney serving Plantation, FL
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Moffa & Breuer, PLLC
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IF you received a Discharge and there were no reaffirmations or you are current on debt you reaffirmed, then unless you failed to list a creditor, creditors cannot "garnish" your account. HOWEVER, if you did NOT list this unpaid debt as an asset on Schedule B of your Bankruptcy Schedules, then the money does NOT belong to you, it belongs to the Bankruptcy Trustee/Estate and the failure to turn it over to the Trustee is probably a Federal Crime which can be investigated by the FBI. I would move cautiously and contact your bankruptcy attorney.
Answered on Nov 15th, 2013 at 1:36 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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I am afraid to say that the payment you received belongs to the chapter 7 bankruptcy trustee if you did not list the account receivable in the bankruptcy. Creditors cannot garnish you, but if you had lent money and someone owed you money at the time of filing, you should have listed that in the bankruptcy. You would have an obligation to tell the trustee of an asset you forgot to list an asset.
Answered on Nov 15th, 2013 at 1:36 PM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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No the money cannot be garnished; however, you may have a much bigger problem. If you failed to list the money that was owed to you on your bankruptcy petition as an asset, you could face federal perjury charges and your discharge could be revoked making all of you debts non-dischargeable. You should contact your attorney ASAP.
Answered on Nov 15th, 2013 at 1:35 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would have to see your schedules and discharge.
Answered on Nov 15th, 2013 at 1:35 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you have your discharge order, they can not touch it
Answered on Nov 15th, 2013 at 1:35 PM