Legal Question in Bankruptcy in Virginia

Re: Creditors Rights

You must stop all collection activities outside of the bankruptcy. You will need to file a proof of claim in the bankruptcy court, properly asserting the extent to which your claim is secured or unsecured. You may also want to consider objecting to the Chap. 13 plan if it is not appropriate. See an experienced bankruptcy lawyer for details and to discuss the specifics of your situation.

Re: Creditors Rights

When a debtor files a bankruptcy, then section 362 of the Bankruptcy Code applies and there is an "automatic stay" which goes into effect. This automatic stay means that no further collection activities can take place, whether they be phone calls, collection letter, lawsuits, or garnishments, etc. So nothing can be done to collect on the debt. The garnishment that you had previously filed gets quashed at the time of filing, and you are not permitted to proceed with it.

Since your debtor filed a Chapter 13, however, you will get a "proof of claim" with your Chapter 13 Notice from the court. If you did not receive the Notice then you should contact the court to see if a case was actually filed or not. If it was filed then you need to ask the attorney why you did not receive the Notice of filing the Chapter 13. If you file a proof of claim then you will hopefully get part or all of the money owed to you over the life of the plan (it depends on whether you are a secured or unsecured creditor; if you are unsecure, it depends on how much unsecured creditors will get paid in the Chapter 13 plan).