I was to receive a $500 bonus back in March of this year. After a few months of tracking it down, I found out last week that my employer applied the money to my bankruptcy. My employer indicated they sent the information to our legal department. Our legal department contracted an outside legal firm for 'guidance' on these matters and that firm indicated that the money should be sent to the trustee and not given to the employee.

I contact my attorney who indicated that my employer is in error and has done this in the past. They were sent a letter from my attorney last year when this happened with about 10 of his clients whose bonus checks were erroneously applied. However, my employer indicated that until further notice, bonuses would be applied to an employee's bankruptcy, no matter what the court order specifies.

It will cost be about $400 to get the money back (not worth it) so it's not really worth it but my question is; Is it legal for my employer to be doing this, even if a court order states otherwise? Between this and my FOC payments being screwed up, I'm getting a little 'frustrated'.