[CLBS] garnishment

[Sarah Bratton]

The earnings were pre-petition and therefor property of the bankruptcy estate. Trustee is entitled to the money, and the sheriff knows this and will willingly turn over funds to the Trustee. However, you need to consider if you have a valid exemption that could be placed on the funds, earned but unpaid wages for instance? If you can validly exempt a portion then the Trustee will return that portion, the Trustee may in fact return the entire amount if there is not enough assets for them to distribute to creditors. My advice be sure you are using up all of your earned but unpaid wages exemption and amend if need be, but advise client that money may be gone so don't count on it to pay bills if they get it back great, if not at least they were prepared for the worst. 


Sarah B. Bratton, Attorney
Martelle, Bratton and Associates
sarah at martellelaw.com
873 E. State St.
Eagle, ID 83616
phone (208)938-8500
fax (208)938-8503


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-----Original Message-----
From: CLBS [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Jeff Rolig
Sent: Monday, October 19, 2015 4:02 PM
To: clbs at admws.idaho.gov
Subject: [CLBS] garnishment

Here is my question of the day.  Creditor has a wage garnishment properly served on an employer.  Pay period ends on Oct 2, with the garnishment in place.  Debtor files Ch. 7 bkcy on Oct 6.  Employer issues check to Sheriff on Oct 9 for the portion of the paycheck (less than $400) to be seized under the garnishment.  Trustee demands the money, if you can imagine such a thing.  Who is entitled to the money, trustee or creditor of the debtor?

Jeffrey E. Rolig
Jeffrey E. Rolig, P.C.
P.O. Box 5455
Twin Falls, ID 83303
Tele. 208-733-0075
Fax 208-733-0717
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