Chapter 7 Bankruptcy Issues

Find all issues related to chapter 7 bankruptcies here.

Debtors Can Recover Monies Taken Through Wage Garnishments 90 Days Before the Bankruptcy Filing

A debtor should pursue recovery of the monies that were levied before the bankruptcy case was filed when the case trustee will not pursue the monies that were garnished.  In some cases, debtors are fortunate in that the sherriff is still in possession of the money; in these cases, debtors will typically receive the monies back from the sherriff once the trustee decides not to pursue it.  ...

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Bankruptcy Creditors Should Be Weary of Continuing to Deduct Monies Via Automatic Deduction in Bankruptcy

Bankruptcy clients sometimes file for relief under chapter 7, 11, or 13 forgetting that an automatic deduction with the bank or some other creditor was authorized and set up long before the bankruptcy was ever filed.   Typically, creditors are weary of continuing auto-deductions once a case is filed and respect the concept of the automatic stay.  However, that is not always the case. In...

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