[CLBS] Bank account garnishment prior to BK - sheriff still has garnished funds [IWOV-GPDMS.FID693075]

[Robert Maynes]

Amber,
I think of it like a repossessed vehicle that has not yet gone to auction under Article 9—still property of the estate.  In my mind, the cash is still the debtor’s until it leaves the sheriff’s possession.
Rob

> On Oct 9, 2015, at 9:57 AM, Amber N. Dina <amberdina at givenspursley.com> wrote:
> 
> I represent a creditor who has a judgment against an Idaho corporation.  We obtained a writ of execution and garnished money from the debtor's bank account.  The sheriff is still in possession of the funds (waiting for claim of exemption period to expire yesterday).  However, yesterday the debtor filed Chapter 11 bankruptcy.
> 
> Should I instruct the sheriff to turn the money over to my creditor client today, or must the sheriff hold onto the money or give it back to the debtor?   (I know if we get it we'll likely have a preference battle down the road).
> 
> I'm looking for case law on point or any other guidance.
> 
> Regards,
> Amber
> ______________________
> 
> AMBER N. DINA
> GIVENS PURSLEY LLP
> 601 W Bannock St, Boise, ID 83702
> main 208-388-1200
> direct 208-388-1244
> fax 208-388-1300
> amberdina at givenspursley.com
> www.givenspursley.com<http://www.givenspursley.com/>
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