Can the creditor still take money? 3 Answers as of August 20, 2010I filed for a Chapter 7 bankruptcy. We notified the creditor who has been garnishing my wages and informed the bank that they needed to block the collection. They still continued to take money out of my wages for the next few paychecks. Was this legal? What can I do?
Law Offices of Michael J. Berger | Michael J. Berger
A bankruptcy filing stops garnishments. Make sure that your employer, any sheriff involved, and the creditor have all received notice of the bankruptcy filing. Any taking of your wages after the filing of the bankruptcy was a violation of the automatic stay (11 USC Section 362) and was not legal. If you can not get relief by talking to your employer, the sheriff, and the creditor or creditor's attorney, you or your attorney should prepare and file an Application for an Order to Show Cause re Contempt for Willful Violation of the Automatic Stay.
Answer Applies to: California