Challenging a Garnishment Order

Jimmy11111 · #1 07-13-2005, 04:48 PM

Thanks in advance for helping me with some enquiries.
I moved to Florida in April '05 from New York. I have zero tangiable assets anywhere. However a company in NY is paying me on a weekly basis for consultancy work by way of a contract for the next twelve months. They were served a garnishment order and have begun to send the total amount each week to the marshall. I am in discussions with the creditor's atty, arguing that this money is income and that he can only garnish 10%. His position is, it is an asset.
I signed personally for a lot of business debts.........the business folded.......and I now have judgements up the wazoo on me personally. Because of having no assets and so many judgements I know I am a perfectly suitable case for Ch 7.
So..........will filing in Florida put a stay of garnishment issued by a NY court to a NY company..??
If and when I file..............will I be still able to collect on my contract.
The total sum of which is a mere fraction of my overall debts.
In filing........is it absolutely required to list the IRS etc as creditors as I haven't filed in the last three years and would need time to get all that in order.

What can I say.........many thanks.......I appreciate your help.

aaron · #2 07-13-2005, 06:18 PM

Quoting Jimmy11111

So..........will filing in Florida put a stay of garnishment issued by a NY court to a NY company..??

No. You would have to challenge the garnishment with the New York court which issued the garnishment order.

Quoting Jimmy11111

If and when I file..............will I be still able to collect on my contract.

Until the garnishment order is lifted, the garnishment will continue. If the order is lifted, any payments owed to you should resume.

Quoting Jimmy11111

In filing........is it absolutely required to list the IRS etc as creditors as I haven't filed in the last three years and would need time to get all that in order.

In filing what?

Jimmy11111 · #3 07-13-2005, 06:56 PM

Many thanks for your quick response...........

I assume if I were to file Ch 7 in NY that that would put a stay on the garnishment order...??

In filing.....Ch 7...is it absolutely required to list the IRS etc as creditors as I haven't filed returns in the last three years and would need time to get all that in order.

Thanks again.

aaron · #4 07-13-2005, 07:01 PM

Sorry - I was speaking about filing an objection to the garnishment.

You can file the bankruptcy where you live. How a court would treat the ongoing payments from the company you work with depends upon how the court classifies the payments, your other income and assets, and whether you end up getting a discharge through a Chapter 7 or Chapter 13 bankruptcy.

Jimmy11111 · #5 07-13-2005, 07:15 PM

I'm sorry Aaron........I'm a little confused now..............I f I file in Florida........will that put an automatic stay on the garnishment in NY. I understand that the creditor could challange this later.......based on these payments being either income or asset.
Do you have a thought on my IRS question....??
Thanks again.

aaron · #6 07-13-2005, 07:22 PM

Bankruptcy is a federal proceeding. Assuming creditors are properly listed and notified, a federal bankruptcy court can stay collection efforts nationwide, and can similarly discharge debts nationwide. Your bankruptcy lawyer can provide you with more details.

Jimmy11111 · #7 07-13-2005, 07:26 PM

I appreciate you help.............with regard to BK attorney...........I cannot even afford the bk filing fee all at once......let alone pay for atty.Yup....all the way down.

In filing.....Ch 7...is it absolutely required to list the IRS etc as creditors as I haven't filed returns in the last three years and would need time to get all that in order.

Thanks again

aaron · #8 07-13-2005, 07:38 PM

You can list all of your creditors, but is is unlikely that you would be eligible for discharge from federal tax debt. I cannot give you legal advice here - just information. You may want to look into a paralegal service or forms preparation service to help you get started.

You can inquire with the bankruptcy court as to whether you would qualify for a waiver of the filing fee.