Recover Garnished Wages in Milwaukee: How to Get Your Money Back with Berning Law LLC
Did You Know You Can Get Garnishment Money Back?
Have you ever been in a situation where a creditor took money from your paycheck or bank account just before you decided to file for bankruptcy? It’s a tough spot to be in, but here’s some good news—you might be able to get that money back! In legal terms, this is known as recovering a “preference payment,” and it’s a process that can help you regain financial stability.
What Is a Preference Payment?
In the world of bankruptcy, a preference payment refers to the money a creditor garnishes from your wages or bank account within 90 days before you file for bankruptcy. Specifically, if the total amount garnished exceeds $600, it qualifies as a preference. This might seem like a minor detail, but it’s an important aspect of bankruptcy law designed to treat all creditors fairly and equitably.
Why Is It Called a Preference?
The term “preference” comes into play because the payment is seen as giving the creditor an unfair advantage over others. Essentially, if one creditor is paid, while others are left waiting during your financial crisis, it disrupts the balance that bankruptcy laws strive to maintain.
How Can You Recover Garnished Money?
Here’s a step-by-step guide on how the recovery process generally works:
Identify the Garnishment: First, you need to confirm that the garnishment occurred within 90 days prior to filing for bankruptcy and that the total amount was over $600.
Filing for Bankruptcy: When you file for bankruptcy, an automatic stay is immediately put in place. This stops most creditors from continuing with collection actions, including garnishments.
Trustee’s Role: In bankruptcy, a trustee is appointed to oversee your case. The trustee reviews all transactions, including any preference payments. If they decide not to act on recovering these payments, you might have the opportunity to do so yourself.
Recovering the Payment: If the trustee allows, you can seek to recover the garnished funds. This usually involves proving that the garnishment meets the criteria for a preference and that recovering it would benefit your bankruptcy estate.
Keeping It Fair and In Your Favor: In Wisconsin, specific exemptions allow you to actually keep the recovered garnished funds rather than having them redistributed among your creditors. By invoking these exemptions, you can directly benefit from the money that is recovered. This is an important aspect of the process as it not only helps to restore your financial balance but also provides immediate relief by returning the garnished funds directly to you.
Why Seek Professional Help?
Recovering garnished funds can be a complex process, involving specific legal knowledge and timely actions. Working with a knowledgeable bankruptcy attorney in Milwaukee, Wisconsin can significantly increase your chances of getting your money back and navigating your bankruptcy smoothly. At Berning Law LLC, we specialize in garnishment recovery, offering expert guidance through the intricacies of bankruptcy law.
Remember, every financial situation is unique, and the sooner you seek advice, the more options you might have at your disposal. Let’s work together to find the best path forward for you. If you’re dealing with garnishments and considering bankruptcy in Milwaukee, reach out to us today to discuss how you can potentially get your garnishment money back and keep your financial recovery on track.
