[CLBS] New policy or have I just not seen this situation before regarding garnishment wages.

[Jon Wilson]

Dear List Mates,

 

Recently had the following situation come up...

 

Debtor's wages were being garnished at the time of filing.in fact over at
least a month prior to the bankruptcy filing.  Debtor files bankruptcy on
1st , payday several days later, but check was still garnished
post-petition.  Trustee has taken the position that since the wages were
"earned before the bankruptcy was filed" AND the payday/check was cut/paid
AFTER the bankruptcy was filed, those wages are property of the bankruptcy
estate and will be kept by the Trustee.

 

Any thoughts, case law, etc. which counters the Trustee's position those
wages earned, but paid post-petition via writ of continuous garnishment
filed by Creditor, are those garnished wages property of the Bankruptcy
Estate?  

 

If the Trustee is correct, is there a stay violation against the Creditor
who was garnishing the debtor's wages "post-petition" even if the Trustee is
allowed to keep these "wages"?

 

Appreciate you input.

 

Jon

Jon R. Wilson

Attorney at Law

 

Wilson Law Offices, P.C.

4614 W. Emerald St.

Boise, ID 83706

Tel. (208)343-8400

Fax (208)424-5006

Email:  jon at boiselaw.org <mailto:jon at boiselaw.org> 

 

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