If I OWE $4OOO TO SOMEONE WHO IS FILING BANKRUPTCY, CAN HAVE MY WAGES BE GARNISHED?

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If I OWE $4OOO TO SOMEONE WHO IS FILING BANKRUPTCY, CAN HAVE MY WAGES BE GARNISHED?

I’m in TX; they’re in CA.

Asked on June 26, 2011 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

From what you right, it appears that you owe money to someone who is him- or herself filing bankruptcy.

The bankruptcy of a person to whom you owe money does NOT affect your obligation to that person, or their ability to sue you on a debt or use legal means of collecting it (like getting an order for garnishment). Bankruptcy affects that person's creditors--the ones to whom he or she owed money--not his or her debtors--the ones who owe money to him or her.

Fortunately for you, your state, Texas does not allow wage garnishment except for a very few debts--e.g. taxes, child support, alimony, student loans. That doesn't mean that the creditor can't garnish your bank account, put a lien on property, or take other actions to collect.


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