garnishment started after chapter 7 filed

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Mona
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Subject: garnishment started after chapter 7 filed

Tue Jan 26, 2010 2:30 pm

We filled chapter 7 on 11/30/09, we have already had out meeting of the creditors and nobody showed up. Today my husband has garnishment from IRS. We are still under the automatic stay and the dates IRS is collecting for is included in the bankruptcy as it is over 3 years old. We filed Pro Se. What recourse do we have? Thank you, Mona

wcd579

wcd579

Joined: 26 Jan 2010
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Posts: 12

206 Magic Points

Tue Jan 26, 2010 2:33 pm

What is the debt for, Federal Garnishments by the IRS are not usually forgiven in Chapter 7.

Tax Debts, Student Loans, and other federally mandated debt can/will remain after Chapter 7, 11, or 13.

mona
Guest

Tue Jan 26, 2010 2:37 pm

past taxes due. these are included as they are over 3 years old from assessment but we are still under the automatic stay and they cannot garnish while under the automatic stay was my understanding.

wcd579

wcd579

Joined: 26 Jan 2010
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Posts: 12

206 Magic Points

Tue Jan 26, 2010 3:08 pm

You need to contact the IRS and inform them of the Automatic Stay

What the Automatic Stay Will Not Prevent
Some tax proceedings

The IRS can still audit you and issue demands for payment. But, the automatic stay does stop the IRS from issuing a tax lien, seizing your property, or garnishing your income.

debranewell2008

Joined: 10 Oct 2009
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Posts: 594

99 Magic Points

Tue Jan 26, 2010 3:21 pm

I am pretty sure after you get your discharge papers they can start to collect again. Have you received them yet?

Aaron
Guest

Subject: Garnishment

Wed Jan 27, 2010 4:46 am

Hi mona,

If the creditor is trying to garnish any of your accounts, I think you can contact a lawyer. You are absolutely right in assuming that after filing bankruptcy under chapter 7, all debt collections are bound to be stopped because of the automatic stay.

However you should keep in mind that if the creditor finds that you still won't be able to pay the dues after discharge of the bankruptcy, they can request the co0urt to lift the automatic stay.

Best of luck,

Aaron

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