Can I keep a wage garnishment check I received prior to a debtor filing a petition for bankruptcy?

UPDATED: Sep 16, 2011

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Can I keep a wage garnishment check I received prior to a debtor filing a petition for bankruptcy?

The debtor attorney says I must return the check. Also, the court violated Bankruptcy stay and forwarded me more checks after bankruptcy was filed. I already spent the money, now debtor’s attorney want the money back. If court was in error, then must I repay money to bankruptcy trustee?

Asked on September 16, 2011 under Bankruptcy Law, Georgia


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The time frame matters here and it sounds as if you will probably have to return the money.  The court being in violation does not really help your case if you knew or should have known that the money was part of the bankrupt estate and not for distribution at this time.  I would cal the trustee and speak with him or her on the matter and find out what kind of deal you can make here.  You do not want them all coming after you now for the money.  And you need to make sure that you file a claim with the court for the judgement you have as well. 

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