Garnishments: Can I get my money back after filing Bankruptcy?

Piles of CoinsPaychecks, bank accounts, even tax refunds….all sources can be subject to a creditor garnishment for a balance owed. And every time a garnishment happens, it feels as if that debt will never go away.

Unfortunately, when you get to the point of being garnished, you are not only being garnished on the debt itself, but also on attorney fees and court costs – often times doubling what you originally owed that creditor.

Our attorneys are here to help you stop garnishments through the bankruptcy process. Immediately upon filing a bankruptcy, your assets are protected from garnishments because of the Court’s “automatic stay”.

We can instantly notify a payroll department or bank that all future garnishments are to stop due to the filing of the bankruptcy case.

But what about all the money that was taken? While never a guarantee, our office will work to get those funds back that were garnished before filing a case. We can only go back 90 days to seek those funds, but we will go after them on your behalf. Also, tax refunds and bank account funds are typically held for 28 days before being sent to the creditor; we can get you filed during that time so as not to loose those monies.

Payday loans, however, a bit trickier. Not because the money is gone, but because of what they attempt to do after the case is filed. Often payday loan companies will still try to cash those post-dated checks you gave them or even go into your bank account. We will advise that tell you bank after filing you no longer authorize the bank to cash checks or allow withdrawals from those creditors. If they still try, it is very important you let our office know so we can get that money back.

When you are being garnished, it is important to call our office. We cannot stop any garnishments until after the bankruptcy case is filed.

Please contact our Westchester Bankruptcy Attorneys today at (914) 864-2465 or (845) 628-4301 to discuss which option is right for you. Our Westchester lawyers will work with you to manage your debt and help you understand your rights under the bankruptcy code.