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10
Jun
2020

Nondischargeable Judgment Garnishment: No Automatic Stay Violation

Creditor with nondischargeable judgment may garnish debtor without violating bankruptcy automatic stay.
 
In the case of In re Embry, the court held that a creditor holding a nondischargable judgment against a debtor may garnish debtor’s assets even though the bankruptcy stay is in effect and the debtor has not been granted a discharge from the bankruptcy court.
 
Debtor argued that creditor must either wait until a general discharge is granted or lift the bankruptcy stay prior to garnishing debtor’s assets.
 
The court, however, ruled that:

 . . . once a bankruptcy court enters its judgment holding a debt nondischargable, the automatic stay does not preclude execution of the judgment against property of the debtor which is not property of the estate.

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Wednesday, June 10th, 2020 at 4:34 am and is filed under Bankruptcy, Employees. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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