How would you like to turn the tables on the creditors who have been garnishing you? Under the Bankruptcy Code, payments over $600 made to a single creditor within 90 days of filing are considered preferential payments and will become part of the bankruptcy estate, when you file a Chapter 7 Bankruptcy. If you exempt those payments they can come back to you. Last week a young man came in and I noticed that he had over $2,000 in garnishments during the past ninety days. After filing all of that money was returned and not only did the creditor effectively pay for his bankruptcy, he was able to discharge all of his other unsecured debts and walk away with $1,000 in his pocket. If you are getting garnished check with an attorney to see if your creditor can help you get a fresh start.
