Wage Garnishments

[cmvalentino]

What is the name of your state (only U.S. law)? New York

I currently have a wage garnishment coming out of my paycheck, and today received another notice regarding a new garnishment notice from a different collector. Can both of these wage garnishments be executed at the same time or does the first one need to end before the second one begin. The first one is for 10% of my gross.

Also, if I was to file a motion for bankruptcy, would that put both of these garnishments on hold.

Thanks to anyone who can help me out here

 

[chadro]

I can answer the second question. Filing for BK will stop the judgment , but the BK has to be approved by the judge. Just filing for it will not stop it right away.

 

[dfromnyli]

What is the name of your state (only U.S. law)? New York

I currently have a wage garnishment coming out of my paycheck, and today received another notice regarding a new garnishment notice from a different collector. Can both of these wage garnishments be executed at the same time or does the first one need to end before the second one begin. The first one is for 10% of my gross.

Also, if I was to file a motion for bankruptcy, would that put both of these garnishments on hold.

Thanks to anyone who can help me out here

Yes, the first garnishment will continue until paid, and the 2nd garnishment will "wait in line."

And yes, if you file bankruptcy there is an automatic stay. Also there is what is called a preferential payment if you get discharged, any payments made to the creditor via the income execution for 90 days prior to your filing will have to be returned to you.

 

[chadro]

Yes, the first garnishment will continue until paid, and the 2nd garnishment will "wait in line."

And yes, if you file bankruptcy there is an automatic stay. Also there is what is called a preferential payment if you get discharged, any payments made to the creditor via the income execution for 90 days prior to your filing will have to be returned to you.

interesting, i did not know that

 

[cosine]

interesting, i did not know that

FYI, that same concept in bankruptcy will likely also, over the next few years, be doing a lot of "take backs" from clients who were paid out to by Bernie Madoff. And in those cases, since a crime was involved, it may go back even longer than 90 days. There are going to be a LOT of lawyers busy for many years sorting out that sad mess.

 

[megabux]

Something that may or may not matter in this case:
11 USC § 547
(8) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600; or
(9) if, in a case filed by a debtor whose debts are not primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $5,000.