QUESTION
Will filing for bankruptcy get me my money back?
Asked on Apr 24th, 2014 on Bankruptcy - Colorado
More details to this question:
I have recently decided to file for bankruptcy after my bank accounts were garnished and cleaned out by a creditor, and less than a week later my paycheck was garnished. So I now have next to no money to function. I know each case is different but I spoke to a woman that said when she filed, she was given the money back from her garnished checks. I do not believe they went after her bank account. My question is, if I file bankruptcy, what are the chances that I will see any of my money again? Is it common practice to return the debtors money or did she just get lucky?
7 ANSWERS
If you were garnished by a single creditor more than $600 within 90 days of filing bankruptcy, you can get it all back if you list it as an asset on Schedule B and apply the proper exemption. You do have to notify the garnishing creditor of your bankruptcy and tell them you want it back.
Answered on Apr 28th, 2014 at 8:35 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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If you act right away to file a case pretty good.
Answered on Apr 28th, 2014 at 8:35 PM
Bankruptcy Attorney serving Huntington Woods, MI
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Detroit Lawyers, PLLC
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You'd want to file quickly. Garnishments taken within the preference period (within 90 days before the bankruptcy filing date) that total over $600 can be recovered if properly listed on the petition (schedules B & C and the statement of financial affairs).
Answered on Apr 28th, 2014 at 8:35 PM
It is very unlikely that money will be returned to you from a garnishment unless the amount is less than $1,000 and you have no other assets that need to be protected by the "wild card" exemption." Typically any money seized just before filing bankruptcy is eligible to be returned to the bankruptcy trustee to be shared with your other creditors. However, if the Trustee chooses not to pursue this money, the creditor gets to keep it.
Answered on Apr 28th, 2014 at 8:35 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Generally, a significant amount of the funds in your bank account is exempt from garnishment - but you'd need to answer the summons you got. You need to determine what if any of the money in your bank account was exempt. You can get that back if you file within 90 days.
Answered on Apr 28th, 2014 at 8:35 PM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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The sooner you file, the more likely you are to get your money back. You have certain exemptions available to you, depending on your state, and the garnished money may be within the exemptions and thus returned to you. See a bankruptcy lawyer, and do it now.
Answered on Apr 28th, 2014 at 8:35 PM
Deborah F. Bowinski
The chances are very slim that you will receive anything back from your creditor. In fact, after filing bankruptcy, if there are any funds to be turned over they most likely would go to the chapter 7 bankruptcy trustee rather than to you. The trustee would then redistribute the funds more evenly among all of your unsecured creditors.
Answered on Apr 28th, 2014 at 8:34 PM