Legal Question in Credit and Debt Law in Wisconsin
Refund of Garnished wages
A judgement for money was obtained against my husband. His wages are exempt from garnishment because we have filed bankruptcy. His employer garnished his wages on 8/30 and did not wait the required 5 business days before sending the money to the creditor. Do we have any recourse for getting this garnished money back? My husband is worried about getting fired for pressing this with his employer, but they clearly did not follow the law. Any advice?
1 Answer from Attorneys
Garnished Wages Refund Possible After Bankruptcy?
I in order to answer this question, I would need to know the date the bankruptcy was filed with the court (which gets you a case number), as well as the date when the employer prepares the payroll checks. The creditor (not the employer) should refund wages deducted after the creditor receives notice of the bankruptcy. If the creditor fails to refund them, you can apply for a court order for the creditor to pay actual reasonable attorney fees required to accomplish the refund as well possible contempt of court penalties. The creditor should also terminate all future garnishments once they receive the notice, as well as refunding all wages deducted back to the date when the case number was first assigned by the bankruptcy court. Your bankruptcy attorney should handle all this if you inform him of the problem.