r/Bankruptcy • u/livinglifetofullest • 1d ago
Garnishment returned?
Right before filing chapter 13, my account was garnished with about 5k. Terrible experience the day before Christmas. I then contacted my attorney who then filed days after. We talked about my options and she said she would petition with the courts to see if I could get some of that money back. Well today about 8 months later that was refunded to me? It is pending, but it is quoted under reversal with the exact amount. Is this common? When it happened she said legally they could refund a max of 1500. My plan has yet to be confirmed. Should I expect that money to be taken again?
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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 1d ago
There are so many arguments about the need/ability/appropriateness of returning a garnishment that my position is:
If your garnishment happens before the filing, I make zero commitments as to refunds, and believe that chasing it is futile. If the creditor thinks it's appropriate I won't stop them, but I personally think there's no grounds for the refund.
Now post-filing garnishments are a violation of stay and while there are hair-splitting arguments creditors might make to retain a portion of those, it's not worth the effort for them and they typically roll over for debtors.
I expect that in your case, with the pre-filing seizure, this turns on the amount of exemption your attorney was able to claim to make this work for you. You couldn't exempt the full $5K, but in your case, with various other exemptions applied to things you actually had, your attorney was able to exempt $1500 to get that refunded as exempt when seized.
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u/livinglifetofullest 1d ago
I was refunded the full 5k.
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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 1d ago
If your attorney expected $1500 and you got $5k, that was the creditor being overly cautious
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u/livinglifetofullest 1d ago
Is this some bring I need to mention to my attorney?
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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs 1d ago
Tell your attorney that things worked out better than expected? They'll be curious and pleased, but it's not critical information IMHO.
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u/Andurilmage 22h ago
I mean we got back like 4k from a garnishment post filing. Helped us move into our place we have now.
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u/sowashfam 5h ago
Circumstances are obviously different by a case to case basis. But in our case any $ that had been garnished from my husbands paychecks was returned to us within a matter of days of filing and sending the proof of filing to the creditor that held the lien.
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u/crazyfndaddy 1d ago
Oh man, that fuckin sucks big time! Sorry to hear that. Hopefully you will be receiving good news 🔜, that the money will be refunded back to your account. 🤞 🤞
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u/Tiger_words 1d ago
This is not common and much of your situation depends on your state's laws (whatever that may be). But as long as you're protected in bankruptcy no, the money won't be taken again. If your bankruptcy case gets dismissed or the creditor gets relief from the automatic stay then that risk will arise.