Legal News for Credit Union Managers Since 1990
« Excess Income & Bad Faith Bankruptcy Filing
Guarantor Liability »
05
Apr
2022

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 Tuesday, April 5th, 2022 at 8:07 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.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Defective Notice to Sell Collateral Defeats Collection of Deficiency
    • Credit Union Assessed Punitive Damages
    • Attorney Fees Assesses Against Bankrupt Debtor
    • Automatic Stay Violation: Costs Assessed Against Credit Union
    • Credit Union Lien Survives Chapter 7 Discharge
    • Constructive Discharge: Credit Union Violates Employee’s Rights
    • Right to Cancel – Truth-In-Lending Violation
    • Mechanics Lien Extinguished Credit Union Security Interest
    • Cashier Checks: Bank Liable to Credit Union
    • Reopening Bankruptcy Case Denied
    • Board Member Loses Suit Against Credit Union

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)